Today I aim to reveal the reasons that help startups and enterprises to succeed. I’ve gone through several resources from the Internet i.e entrepreneur.com, forbes.com, and also coordinated with many business influencers via Instagram and other platforms.
But, none of them gave me a satisfying answer. In the end, I came across TedTalks, particularly the “Single biggest reason why start-ups succeed | Bill Gross”. And I got an actual answer to what I was looking for.
The reason why I am sharing this with you is that I think many business people who want to start their own business or have already started a business are also trying to find the actual answer to this query but fail to reach any conclusion, just as I did previously.
I faced the same issue and now I’ve got the answer that you are looking for and I am sure after reading this you will get a pretty good idea.
Here is the TedTalks video that provided me with the answer to my questions.
Bill Gross is an entrepreneur and founder of Idealab. He is an analysis tech tycoon and curious individual who knows how businesses succeed in the market and where they could fail. He has analysed a ton of companies and collected abundant data that he showed and explained in his TedTalks.
Further, I also have some amazing tips and advice i.e what other things might help you to succeed in your business. As this is an entrepreneur regarding article, I have included a bonus topic of Uber incubator program as well in the end.
Here I have shared with you one of the most interesting facts which surprise me and Bill Gross i.e what factors affecting the most, help companies to succeed. I’ve also shared my thoughts that can help companies to succeed.
Because new innovations, new ideas, and a new way of business changes the concerning lives and the world for good. Think of Uber for instance. How they succeeded and how they changed the entire world with their passenger transport service.
But here is a question for everyone.
Why companies with a great idea can also meet with failure?
In my previous experience, I have seen many startups with great ideas, great execution meeting failure. I became curious to figure out why this happens with high potential startups?
I decided to find out what factors matter the most and create a systematic approach that startups need to integrate in their working.
This TedTalk gave me what I needed. It answered the same questions that I think every entrepreneur has, right!!
So, here are the five most important factors that account for a company’s success or failure.
1.Idea.
Ideas are one of them, if not the most critical part of the business. If you don’t have an idea, what will your business do? Ideas don’t just mean innovation; ideas mean what you want to accomplish with your business.
Here are my tips
1. If you don’t have an idea for your business. Take a real-world problem i.e what issue do most people suffer from, and try to provide a solution for that. Confusing, right!! Let’s take the example of Uber.
Uber found a real-world problem i.e. daily commute and provided a unique solution for that.
But, is a good idea enough for a successful business?
No.
There’s where the second factor comes to picture.
2. Team
Execution, adaptability, and planning of the idea matter more than the idea itself.
Here are my tips on how you can execute your idea well. Make the system decentralized. Handle everything in little pieces and then execute the complete plan from the centre. Confused? Let’s take the example of Alibaba.
One of the most important factors for the success of Alibaba is that they made their system decentralized. They handled the selling system locally, country wise, and then at the end report and analyse from the central headquarters in china.
I know your ideas may not need country-wise handling in the beginning. But, make sure you build a decentralized system because I firsthand witnessed an entrepreneur not able to handle the things when his business started expanding.
3. Business model
A perfect business model leads to lucrative revenue from multiple sources. But, what is a business model?. You have ideas, You have a team but don’t know how to execute those things then the idea and the team are valued zero. In a word, the business model is the plan to perfectly execute ideas.
My tip here is to try and figure out every aspect where you can expand your business. Here you have to try all possible ways to run a business and check whether it helps to succeed your startup. Let’s take the example of Grofers.
Grofers wanted to enter into a very competitive Marketplace. So they looked for a marketplace that had least competition (comparatively), hence, Grocery. They took advantage of the consistent demand and less competition that this marketplace offered.
4. Funding
Sometimes companies receive a massive amount of funding and sometimes they run on fumes. So, the next step is for you to figure out the importance of healthy funding.
My tip here is that before pitching for funding, you should secure your ideas by making the investors sign an NDA and other relevant documents. It has happened more often that an entrepreneur with a great idea pitched to several investors and within a few months that same idea is leaked as clone solution.
Your idea gets stolen and you can’t do anything about it. Hence before pitching your ideas, you must secure it by getting them to sign necessary documents.
5. Timing
It means you better not be early with your solution when the world is not ready for it OR be late when already several cheap clone solutions are available to the world. Perfect timing is very important i.e when people facing a problem are in dire need, at that time your product or solution should be their lifesaver.
Uber and Grofers are the best examples of this. People don’t want to stand on the curb and waste time waiting for a vacant taxi. Uber saw this problem and brought the needed solution at the exact time. Same goes for Grofers. People now don’t want to go to the store to buy their daily groceries. Grofers saw the problem and provided the right solution at the right time. They commit to delivery within 15 mins.
My tip here is to provide an on-demand solution of your business and integrate technology with it. Let me explain in broad terms.
What Uber and Grofers have done? They realized the real-world problem of travelling and shopping grocery. They took advantage of the digital world. Through a digitalized system, they provide a better app solution.
Because the internet and mobile have already become an integral part of the lives of people.People spend nearly 4 hours on an average on their mobiles. So why not take advantage of this habit of the users?
With a digital system, you reduce cost and increase efficiency. All you need to build is a perfect application. If you want to know how much does it cost to make an application then you can find your answer from one single guide. You don’t have to look everywhere.
But now my question is which is the most important factor among these five.
1. Here is an analysis of the Top 5 companies who succeeded. (Ranking factor from 1 to 10)
2. Here is an analysis of Top 5 companies who have faced failure. (Ranking factor from 1 to 10)
3. Here is an analysis of Top 5 giant companies who succeeded. (Ranking factor from 1 to 10)
4. Here is an analysis of Top 5 giant companies who have faced failure. (Ranking factor from 1 to 10)
From analysing 200+ companies, we concluded the following importance for the mentioned factor
When I got this report, I was surprised to see that ideas which are a strong pillar for any business is not the most important factor, rather the timing and team execution are. Then after deep thinking, I realized that this report is 100% correct.
Summing it up
Today most of the people who exceed in the market don’t have a great college degree, high certification, don’t even have enough money whey they start and don’t have enough experience to run business.
Still, they thrive and succeed because of the perfect timing and execution of the idea. Take the example of Alibaba, Uber, Grofers, Tiktok and many more. They are all the top guns in their industry now, because of the accurate timing and perfect execution.
You should focus more on a real-world problem, find the right solution, launch it at the perfect timing, and make good money doing so.
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