Startups are literally a journey into the unknown and entrepreneurs need to be comfortable with taking on ambiguity, uncertainty and multiple challenges. Unfortunately, on average, 9 out of 10 startups will go out of business, and the remaining that are able to survive and succeed are the ones that capture the qualities outlined below.
1) Vision. A well-defined vision is a skill or gift that every company leader needs in order to cross the finish line. It will be the major force behind an entrepreneur’s success and will serve as a compass in tough times. A startup needs to envision how to monetize from the very beginning. The first dollar counts, especially for potential investors.
2) Speed. Getting things done in a quick manner is one of the many reasons why startups are able to reach their goals and milestones. It makes a difference when a startup is able to launch on time or when it’s able to move much faster than competitors. Successful startups never delay the process of getting things done, and have to work as much as needed until something is complete. The most productive people are the ones who make the most of their time. Regarding speed, having knowledgable people in-house really makes a difference. I believe that the faster you can make the mistakes, learn from them and improve your offering, the better.
3) Budget Masters. A successful startup is efficient in managing its finances and able to operate very lean. Every angle should have its own budget assigned and unnecessary expenses should be avoided. It is important to know what the company needs in order to accomplish milestones and budget accordingly. When resources are limited, and time is of the essence, companies need to master the skill of doing more with less.
4) Social Skills. Networking is another reason for startup success. A founding team that knows powerful and influential people in the business is completely priceless and can open the doors to partnerships and to find angel investors in a New York minute. Great startups have an outstanding CEO who is able to work his or her way into any organization. On the other hand, startup leaders need to inspire people and give them reason to follow them through the uncertain journey, often where team members are required to make many sacrifices such as work/life balance, salary cuts, limited or no health insurance and so forth.
5) Discipline. Discipline starts with self-control and is a product of a strong self-imposed personal standard. Without discipline, startups fail to succeed in business even if situated in the best economy. Self-discipline leads to positive work ethic, and work ethic leads to getting things done effectively and efficiently. It is critical to have all the team members aligned and working together to get to the finish line.
6) Determination. Strong determination is always necessary for success to take place. A successful startup emphasizes the significance of determination when building a business and never quits, especially when the road gets bumpy and scary. There are many challenges that will arise and the startup team needs determination to overcome these challenges. Just like the book from Jim Collins “Good To Great”, if the right people are seated in the right seats of the bus, the startup will eventually find its direction towards success. Determination and persistence is a key component to making this fact happen.
7) Ability to Adapt to Changes. The best startups are always willing to adapt to new technologies. Adapting to change can lead to major breakthroughs. During the early years, the startup will need to iterate the product plenty of times until they are able to find the secret sauce and get it right.
8) Fundraising Skills. Cash flow is the blood line of any business. This means that businesses can be ruined with inadequate capital. Successful startups are the ones that have sufficient capital to run their business operations. One of the primary duties of a startup CEO is therefore to be able to raise capital. Which relates to 4) as fundraising is closely tied to the CEO and Senior Management contact network.
9) Master of Time Management. Startup life can be rough, between the mountain of things to do and limited staff and resources, the company’s success hinges on the team’s productivity and effectiveness to do more with less. I was once told by a savvy and very successful business man that having things to do will never be an issue, but carefully picking what to focus on and what to prioritize will be your business challenge.
10) Execution. Lastly, having an idea is just the beginning and really, execution is 98% in determining each business’ success. For this part, the experience of the team is critical as their backgrounds will help towards making more good decisions than bad ones. In summary, successful startups are always looking for opportunities to do something better by thinking outside of the box and constantly questioning the status quo. They learn from their mistakes and fix them quickly as they continue their long, challenging and soon-to-be successful journey.
