4 factors that predict start-ups’ success
The corporate scenario of today has made it simple for anybody to start a business. What is difficult is to sustain your business and turn it into a profitable venture.
Oftentimes I have been asked if there is a set method that could help in making a start-up successful. I cannot tell you to do these things and say that if you follow it you are definite to succeed. However, there are certain time tested factors that can help in predicting the future of start-ups. It is nothing but a remarkable mix of powers that influences the growth of start-ups.
Market Need at that time
Research has shown various surprising and reassuring correlations between age, education, gender, and location of start-ups. Here are 4 factors that can envisage the imminent success of your start-up:
During the launch of a start-up, it is important to keep a check on the market. A lack of market need definitely contributes to shut down or failure of start-ups. One needs to understand the need of the market and also go deeper into what your competitors and your market is doing to ensure that you are ahead at all times.
Pricing of product/service
Here is a factor that has to be given ample thought and research. This may seem a simple matter, however, if the price is too low, the cost becomes high and people may wonder why there is such a variation. At the same time, if it is too high, you will lose the market to the competition. One has to ensure that pricing is arrived at in such a manner that the start-up is profitable.
Timing of the launch of product/service
What is the ideal time to launch a start-up? The only answer to this is – when the market is ready. If there is a fantastic idea and the product/service is launched too early at a time when the market is not ready, it will not work. At the same time, if one is too late, the market is already overloaded and the level of saturation is so high that it will again be a failure.
The quality of the members of the team including not only their knowledge, competence and skills, but also their attitude is something that has a direct influence in the success of a start-up. Even if you have exceptional entrepreneurship qualities, to accomplish great success you need the right team. With the support of the team, the vision can be achieved by creating achievable goals.
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Statistics say that 90 percent of start-ups fail eventually. It is a myth that if a person has a great idea, your start-up will succeed. Yes, a great idea is definitely needed, however, a start-up cannot not run only on great ideas. It requires the constant support of a skilled team and the correct functioning of each factor to successfully nurture and develop it.