Recent statistics and reports suggest that only 1 out of 10 businesses flourish and succeed. While most startup businesses fail, only 10% of businesses out there survive and thrive. So the question that one may ask is how some businesses survive or even thrive against all the odds?
Here are the top 10 reasons why some startup businesses succeed:
1. Great leadership
While great leadership is an important factor in making a business successful, managerial incompetence and lack of experience or skills among top managers or owners could make a business fail. When things get tough, your staff look for a leader that provides them with vision, motivation, strength, couching, and training. It's your leadership that will make everything come together or fall apart when things get tough. Without great leadership, all other resources in a business are ineffective.
2. Great business model, mission and planning
Having a great business model, mission and planning is critical when it comes to running a business. For example, an online business model based on developing a social media or an APP with millions of users is too risky. It takes many many years of hard work and determination to build a product with millions of users. For twitter or facebook to be successful, thousands of businesses or ideas have failed. Having a right mission and business plan is also important when it comes to your business success. A good business plan is simple, realistic, specific, and complete and fits the business needs.
3. Smart capitalization
As a successful business owner you need to find smart ways to capitalize your business. As an entrepreneur you need to consider the suitability or availability of capitalizing your business through cash flow, debt or equity. If you decide to capitalize your business through cash flow, you should consider that using your cash flow (to grow your business) could end up slowing your company’s growth. Capitalizing your business through debt could affect your monthly cash flow. And capitalizing your business through equality will bring other partners into the business. If you decided to grow your business through selling a portion of your company, make sure to own at least 51% of your company. The negative side is that you will have other partners that will be involved in making critical and important decisions that you may not like or agree.
4. Great team effectively working together with positive can do attitude
As good of a leader as you may be, you have to be able to put together the right team of people in order to work effectively and efficiently. The initial recruitment is an important task and you need to hire people who can get along with others and have a positive can do attitude.
5. High in demand product
You need to have a product that's hot and high in demand. Try to evaluate the market demand for the product or services that you are selling. Find out how many people are searching for a similar product or services like yours and take your time to come up with the right product or services.
6. A receptive market
In order to improve your marketing response and conversion rate, you need to find out how receptive the market is to your product. In order to succeed you need to expand your market, find the right product, and make sure you are serving the right customer.
7. Great marketing plan
In order to succeed, you need to reach millions of people with similar interests. You need to have a specific list of all your marketing goals and should be able to describe your target audience. You need to set a marketing budget and come up with marketing strategies and tactics in order to reach your target audience.
8. A growing economy
It's very hard (not impossible though) to make your startup business successful when the economy is going through depression or recession. Economic growth is an important factor if the businesses are about to survive and thrive. The growth of the economy is measured by gross domestic product (GDP) of a country per year.
9. A great execution plan
It's time for execution if you have come up with a great, high-in-demand, product and have finished your business and marketing plan. In order to execute your plan or strategy, you need to set up clear priorities of all the tasks that need to be done.
10. Timing, timing, and timing
Timing is everything in life. Some business models might be great for sometimes and not that great for other times. When you are starting a business, timing is almost everything. Keep in mind that opportunities don't last forever. Knowledge, motivation and hard work can get you far in life, but when launching a business you need to ask yourself if your idea will work in the current market situation.