Tips for Success and factors of successful start up

As we mentioned last month, earlier this year Yahoo7 Finance reported that a third of new businesses close within three years. So what is it that the successful starts have in common?

1. The right idea at the right time. While many start ups are based on a ‘good idea’ successful start ups also launch at the right time into a market that is willing and ready to embrace it. Make sure that you do market research and make sure that your target market will be willing to ‘buy’ your product/service. It is also imperative that your start up offers a product or a service that satisfies a need.
2. Be an inspiring leader, or hire one. The enthusiastic entrepreneurs who start a start up often set about doing so to make a difference – or a mint. However that doesn’t always mean that they will inspire their troops. Invest in becoming a good leader, and if you can’t or don’t want to do that – hire one!
3. Staggering point of difference: The start up must deliver something new to the market; there must be a point of difference. This is another reason to make sure that you do your market research. A good example of this is Uber. There were already taxi companies all over the world, but Uber provided a different experience, cost and ease (with their app).
4. Mix of stakeholders:There must be a mix of stakeholders that have an interest in the success of the product. These stakeholders should include the leaders, team, investors and the ‘fans’ in the market. This mix creates risk distribution and strengthens the drive.
5. Clear marketing communications:Start ups have less time, and often less of a budget, to create brand awareness. Make sure that materials and communications created are simple and cut through to the point quickly.

These key factors make good business sense, and could be applied to an existing business just as easily. However, studies relating to start up businesses success stress that the market judges start ups swiftly and that efficiency in all of these factors is the key. Next month the Rubiix Start Up Series will share tips Setting up good business procedures and invoicing. Look forward to joining you on this journey!