Launching a technology startup is a complex process with multiple factors contributing to its success. A startup is meant to solve a problem or emerge as a groundbreaking force to disrupt an existing industry. This change, nonetheless, needs to be launched at just the right time, right place, and for the right target market!
Some of the factors which determine a startup’s success are:
A startup idea might sound crazy in the beginning but once it becomes successful, it takes not long to convert it into a revolutionary business model. However, an idea itself is of no value unless it has been converted into a high-performing product for the consumers to use.
An essential factor behind the success of a tech startup is the team behind it. Great ideas can only be converted into something big by a great team. A tech startup requires expertise and demands great execution, thus, only a strong team can contribute to its success.
The Business Model
A startup idea must be backed up by a monetisation strategy to succeed. This does not determine success during the initial phases, but eventually, a startup needs to earn to be able to survive.
Funding is another important factor that contributes to the success of a tech startup. A startup can succeed in the early stages if the idea is great and is backed by a strong business model and a team. But sometimes when the growth is slow, startups require funding to survive and succeed.
New technology is usually developed as part of the innovation process, and this requires it to be adopted by the customers when launched. This means that a tech startup is only good to be launched when there is a need or room for innovation and the customer base is ready.
The person responsible for managing all these factors and turning tides into the new startup’s favour is the founder. A successful startup founder walks a startup through all stages while taking sound decisions to reach the desired goal. Multiple factors together add up to the success of a startup founder. These include a fine mix of expertise, experience, and soft skills that help a startup founder excel.
In the case of a tech startup, a founder needs to have some additional flavour in its mix of skills and expertise. This primarily includes technical knowledge and understanding of innovation in the present world. We have hundreds of aspiring founders around us who intend to build their startups one fine day. Such people often have remarkable ideas but are skeptical of how to build the startup and how customers might react to it.
Not just this, even mid-way down the lane, founders often feel lost and find it difficult to proceed and progress. You must be eager to know what are all those crucial factors that a startup founder must have to be successful. Here is what a startup founder needs to master:
To be able to bring out the best idea, a startup founder needs to have in-depth industry knowledge. Why is that so? The best startup idea is the one that solves a problem for an unsatisfied target audience. Thus, to be able to get hold of the problem and later find its solution, a founder needs to have sound industry knowledge.
There are multiple industries out there longing for attention with multiple problems yet to be solved. However, every industry operates differently with a different set of values and nuances that need to be addressed with the right idea. Having industry knowledge will enable a startup founder to come up with that exclusive idea.
Entrepreneurial experience can add a spark to a founder’s efforts while building a startup. It is often that founders fail with their very first venture. Even Jack Ma did, before founding Alibaba.com, he failed twice with his earlier startups. However, the experience is what helped him excel later.
Having prior entrepreneurial experience enables a founder to understand the customer’s needs, build the right products and validate the business viability better. Having prior business experience allows startup founders to tactfully deal with the difficult situations that one comes across almost every other day.
The world today is spinning around with innovative technology emerging from every corner. Startups in this age need to be backed up by strong and secure technology to be able to compete with the rest. This means building a full-stack digital product that can be used by the target users to solve their problems. A founder must be able to understand the technicalities and the stack being used to build their product.
Keeping things real, not every founder can have technical expertise no matter how important it is. Therefore, the world is now being introduced to startup studios. These companies such as Venturenox, build bespoke digital products for startups to compete in the market. A startup studio acts as a technical partner for non-tech founders to help them develop and scale their products with ease.
Building a startup requires sufficient funds. Money might not be a requirement during the initial stages when the idea is being validated, but once an idea is up for digital product development, startups need funds.
A founder must have sufficient savings or can raise funds from friends and family to successfully start building their startup. However, later, as the product becomes larger and starts to acquire users, founders do need additional fundraising to support scaling and growth.
Whether it is a founder’s own money or a collection of funds, all needs to be spent very wisely to balance out the capital.
Startups are all about growth and to be able to survive in a competitive world, startups need to become very good at what they do and scale with a predictable financial and technological model. A founder must be able to design a scalable business model not just to grow profits but also to make the product better. A tech startup founder can plan on launching more efficient updates and running vigorous marketing campaigns to grow its user base. However, the expectations need to be realistic and approachable.
The success at the initial stages of a startup solely depends on the efforts of the founder. Once the startup reaches the development stage, founders require a quality team. A startup founder must be good at not just leading and managing a team but also hiring the right people. Nonetheless, a startup founder’s success depends on the team’s efficiency. Similarly, just as a startup requires scaling, it is essential to growing the team simultaneously.
Character & Grit
Coming to the personality traits of a successful startup founder, one most important needs is to be high-risk tolerant. Failure can come to a founder at any stage of the startup; hence, one needs to be always prepared!
Following this, a successful founder is patient and shows resilience in times of uncertainty. He or she must be creative yet think critically and welcome suggestions from the team. A successful founder is determined to make things work no matter what.
Nothing excites a founder more than the thought of successfully running a startup! However, to increase the chances of success one must work hard to bring out favorable outcomes. A successful founder needs a brilliant idea, critically validated to find the right product-market fit, followed by the development of a high-performing product backed up by a scalable business model.
Building a startup is never an easy job, however, having the right skills, attitude, and team can make the journey easier.