It has been estimated that 90% or more of startup companies will fail.
Scared yet? That is a frightening statistic for all of us entrepreneurs and startup companies! This statistic comes from many credible sources in the business world and although they have done their research, there are multiple factors that should be taken into account.
Initial capital, public perception, employee experience levels, entrepreneurial drive… the list could go on forever with all the strong elements that can lead startup companies to success. Our company, Clariti, is one such business that took these elements into consideration when starting up.
The question still remains- is there a definitive factor that leads to startup prosperity?
We are all searching for the magic “it” factor. And as startup companies, we all have to deal with major hurdles, one of which is having enough money to confidently start a business. Unfortunately, some startups won’t be taken seriously unless they have initial financial security. It can be difficult for these businesses to receive funding if they don’t have a promising product idea that investors feel comfortable with, in the hope of making a good return on their investment. The monetary aspect is important, but definitely not the only factor that will boost a new company to success.
The way the public views a company is additionally crucial for success. This not only includes the actual product the business is promoting, but the ethics of the company and its interaction with the community. The public must believe in the product and feel that there is genuine need for it. The public’s perception is especially important as a company looks into growing their startup through new hires. A strong support system from the community puts a startup in a good position for future opportunities.
The common perception of a startup is a fast-paced, yet laid-back, ambitious company that may have received funding to promote an innovative product or service. Startups are bursting with creativity and the desire to make a difference, because the employees are confident and passionate about their work. The persistence and competitiveness of employees can make a difference in how the company is promoted.
Startup companies need to understand their products inside and out, know what the customer wants, and be able to execute responsibilities in an effective way. This drive shows that a business has earned its success and should be able to expand even more in the future.
We have not found the magic fountain for startup success because so many factors play into the success of a business. However, we believe that despite the odds, all startups are worth a shot and that the success of a startup is possible with the combination of these factors and more.
What factors do you think are important for the success of startups? Share with us in the comments below!
For more startup tips check out our recent blog post, ‘Using Social Media for Growth: What Our Startup Has Learned’.
Originally published at clariti.app on March 26, 2019.
