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Entrepreneurs are superheroes as they all take the leap of faith and embark on a journey into the unknown. It takes a certain type of person to take on the responsibility of founding a company or working for a startup. The nature of a startup is one that contains sacrifices, emotional and physical investment, and pressure to perform.
On average, 9 out of 10 startups go out of business, and the remaining that are able to survive and succeed are the ones that capture the qualities outlined below.
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) 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.
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.
4) 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. The primary duty of a startup CEO is to be able to raise capital. A good way to raise money online is via equity and debt crowdfunding platforms like RockThePost, as it allows the startup to raise funds, in some cases, in just 60 days from accredited investors. This eliminates the need of doing an 8 month road show which is tiring and ultimately very unproductive for the business itself.
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.
Any other reasons why startups succeed? Feel free to post them below.
Photo credit (Getty Images/Andrew Rich)