So you’ve finally got that personal loan application approved that will allow you to establish or invest in the next big startup. Should you be a founder or an investor? There are so many startups that keep sprouting everywhere, and each one sounds better than the last. We’ve seen a lot of startups that have grown bigger and more profitable over the years, and ordinary people becoming millionaires at a young age. Unfortunately, not all of them have been as successful and profitable as initially expected. Whether you’re here to build your own from scratch or to invest, these are the three things that will tell you if a budding startup will succeed.
1. Good Team
Successful startups have a solid foundation and a team of experts working behind the scenes, a team who has vast experience and knowledge about the market and its consumers. The team knows the ins and outs of the industry and is equipped with the skill sets that will steer the business in the right direction.
Even if you have the next big startup idea, when it comes to working with other people and handling other people’s money, it can prove to be volatile, stressful, and destructive at times. Startup founders are willing to go the extra mile and work and communicate with investors 24/7.
A good team also has a strong and effective management style to oversee daily operations, meet goals and targets, and simply allow the project to thrive. There may be situations where investors prefer a new management team to be brought in. But most of the time, the existing management team is maintained, especially if it’s already a competent one. It doesn’t matter if you’re working on something that will surpass the success of Pinterest, Dropbox, or Snapchat. If you put the business and administrative operations into the wrong hands, the project will never reach its full potential, and you’ll end up losing money instead of making money.
2. Good Product
What makes a good product? It’s something that sells or solves a particular problem of a consumer. Not all products or services sell like hotcakes, but a good product fulfills consumer demand. It’s something that people really want and solves their needs, which are still not being met. Why do you think Uber and Airbnb are so successful?
It’s not a flash-in-the-pan type of product that’s only in demand for a year. If it is, there is, at least, a swift and sound exit strategy ready. Strong and promising startups demonstrate sustainability, and they are profit-generating for many years.
3. Good Execution
Everything looks good on paper. Everything looks achievable in slide presentations and brainstorming sessions. That is, until you start executing it. Bright ideas and ambitious plans require strong, consistent, well thought-out, and meticulously planned action for them to succeed. Successful startups have unique and innovative strategies that stand out from the competition. They demonstrate why their product is the next big thing. People can see from the get-go what sets it apart from other products in the same niche, and how it can change the landscape compared to similar products in the market.
Still not ready to take that plunge? Better arm yourself with the best information available and take note of these common mistakes when starting an online business.