Creating your own business is a challenge that is always associated with a specific risk. There is a number of reasons why a modern startup can be failed. At first, you may see no objective signs that you are moving in the wrong direction. These signs are unique for each sector.
However, we can still identify specific signs that your startup is destined to be successful. And speaking of them, we, of course, mean the early stage of your startup’s life. At this stage, choosing the right path is crucial. A timely assessment of the situation will help you avoid additional expenses and, perhaps, indicate the right moment to pivot. After all, you don’t want to realize that your startup was initially doomed to failure after you have spent enormous resources.
Cases of Failure
Paradoxically, it is the experience of losses and failures that indicates the success of a startup. The experience gained from your own mistakes and failures is the precious knowledge that no single school or institute will give you. Still, you can get development services for startups from a company like Redwerk to avoid most mistakes. And even the best business evangelists cannot prepare you for this.
Let’s recall the words of MVP guru Steve Blank. “A startup is always moving from failure to failure.” Therefore, your ability to learn from your mistakes determines the fate of your business.
Finally, if you encounter failures, make mistakes, and still have a startup up and running, isn’t this a sign of its success?
Perhaps, some people are comfortable with working in a panic mode. Sticking to such an uncertain strategy may sometimes seem a wise choice because your startup is open to change and allows the market to guide it. It sounds good, but, in fact, it’s quite the opposite. The market can be extremely unpredictable, and the desires of users are very volatile. Read the stories of entrepreneurs uided by the whims of customers and find out where they ended up.
A clear strategy is the first indicator of a successful startup. Of course, you have to take into account the circumstances and reckon with the realities of the market. However, and this is more important, these potential circumstances and realities should be considered in your strategy initially.
A plan for 3-5 years should always be kept in your sight so that you can make changes to it when necessary. But each member of your team must clearly understand what the final goals are.
This is one of the most important and obvious signs. However, everything is not as simple as it seems at first glance. A common mistake of novice entrepreneurs, especially in the IT field, is that they analyze the number of users and their behavior too quickly. Having seen the first sales and subscriptions, it’s hard to refrain from thinking about your enterprise’s success. However, it can only be a short-term phenomenon, the result of a good marketing campaign or else. A truly successful startup shows its progress later when it has already gained loyal users, willing to pay. If there are such users, it is a sure sign of the success of your startup.
It’s hard to hide something in the modern all-digital world. This applies to business activities too. So, the best way to avoid suspicion and bad press is to operate openly. A successful startup runs publicly and follows the unwritten rules of fair businesses because it has nothing to hide. Your success should have a clear nature. If you are striving for long-term business prosperity, there should be no frauds with payments, settlements, and methods of customer attraction. Fair policies also increase employee engagement
All this leads to another important sign of a successful startup, which is good communication. It may be communication between the company chiefs, employees, investors, the press, and so on. It is impossible to create anything successful in the void. Communicating, attracting new investments, and making deals are much easier when your business is transparent.
Finally, any startup is about bringing a true value, isn’t it? Of course, even the most useful service would hardly have found its users if no one knew about it. Therefore, value is not enough for success. But even the best advertising and marketing team will not make people come back for your services again if these services are not helpful.
Finding the right niche and current problem that your business may solve is just as difficult as finding an effective solution. Many entrepreneurs make the main mistake here. They strive to find and solve the problem of a cosmic scale, not paying attention to the ordinary pain points of the customers. Remember the story of Zappos, the first e-commerce service that began selling shoes online. The creator, Nick Swinmurn, came up with the idea that it might be helpful for people to choose and purchase shoes online since everyone knows their foot size, right? That’s an ordinary thing for 2020 but a brilliant idea for 1999.
Having the real value that your startup brings by helping real people solve the real problem is, perhaps, the main and most reliable sign of a successful startup.
It is hard to determine true success. This is something elusive. There are many additional aspects to consider here — for example, the timeframe of this success. A startup can receive a standing ovation at the beginning but fail in the end.
The five listed signs are not a 100% guarantee of success. Were there any companies that showed all these success signs but failed anyway? Of course. However, it is safe to say that the above five principles significantly reduce the risks of failure.