Business Startup Success Factors

If there is one thing I am always asked, it's "what does it take to succeed?" Well, there are lots of views on this, and a surprising number of people have "magic bullet" answers. Of one thing I am sure: there is no single factor. I have summarised what I have learned below. I am sure you will have a view on this, but bear in mind that I have focused on the universal and necessary. You may succeed without 100% of some or even any of these, but if you ignore any completely you are unlikely to succeed at all.

1. Be Brave: If you actually take the first step into starting a business, you have already demonstrated that you are in the top 10% in terms of courage. Then you need the day-to-day grit to endure. This can be difficult alone, so if you do not have a strong support structure (family, friends or advisors), consider whether you should be part of a partnership.

2. Have Clarity: You must be absolutely clear what your business is and what it is not. Write this down and review it several times – it is surprising how vague and unstructured many startup plans are! Try to cover every aspect of the business, at least in outline. Key areas to cover are: values, vision, mission, product strategy and goals, both numerical and qualitative. The mission statement should be clear and inspiring enough to drive the business forward. The other side of clarity is not deluding yourself, and I would put strong financial management under this heading!

3. Deliver: All business tasks need to be performed with all your energy to deliver quality products and services that will be valued by your customers. Therefore, choose something you are passionate about, can be in the top 10% in terms of quality and can deliver a profitable product or service. Delivery is also about your team, so pay attention to recruitment, motivation and retention, right from the beginning.

4. Overcome Obstacles: There will always be constraints and roadblocks. You need to develop the ability to overcome or work around those that will seriously affect the development of your business. Typically, the entrepreneur is the source of most issues, despite the tendency to blame external forces. This means you must understand your own capabilities and weaknesses very well. External advice can help here.

5. Free your Creativity: Everyone has the ability to produce creative solutions, and it really is true that “necessity is the mother of invention”. In business, creativity needs to be focused on developing superior value, finding simpler, faster, lower-cost ways of delivering that value and on solving the inevitable problems and obstacles. Many people say that successful entrepreneurs focus on the solution rather than the problem. The reasons this is true include the more positive mindset it creates, and the increased attractiveness of working with this type of personality.

6. Be Focused: Be single-mindedly focused on the most important thing at that time, and stay focused until it is delivered. This is the single greatest success factor. If you have difficulty deciding what to focus on, you may find it easier to decide what not to focus on.

7. Keep Going: Successful entrepreneurs keep going. This does not mean doggedly following a single track regardless of results. The successful entrepreneur is always trying new things and abandoning those that don’t work, retaining the learnings in the process. In fact, most achieve success in areas they did not plan for at launch. Finding the right balance between persistence and flexibility is the art of the entrepreneur.

Planning to Succeed

Registering a business may be relatively straightforward, but managing its development in a consistent, sustainable manner is extremely challenging. In particular, there are human and physical infrastructure issues that entrepreneurs have to grapple with – quite apart from actually building the business.

For this reason, planning is essential.

For effective planning, consider the following questions:

Business Model:
What business are we in?
Are we primarily a product or service company?
Where will revenue come from and how?

Financing:
How much initial funding will we need?
Where will this come from?
In the longer term, what should the balance be between debt and equity?

Controlling Costs:
What is the right balance between fixed and variable costs?
How can we reduce costs without undermining my offering?
Do I really need my own premises?

Finding reliable Advisors:
Who do I and my partners know?
Can my contacts recommend?
How can we research suitability?

Access to Networks:
What networking events will help?
Should I join associations/interest groups?

Building the Team:
Should I employ staff or partner/contract/outsource?
What are the key positions I must have in-house?
How do I find people?
What terms do I offer?
Should I offer equity?