The 2 things that successful startups have in common
It’s seems there is always a hot new startup creating a buzz. Think the American Uber or Kenyan Mpesa, but the cold truth is 9 in every 10 startups American startups fail; that is 90% of all new businesses. The figure in South Africa isn’t much better with 80% of startups failing, according to the 2014 Global Entrepreneurship Monitor.
While it’s good to learn from others mistakes, its as valuable to focus on what the success stories are getting right.
In his article “90% Of Startups Fail: Here’s What You Need To Know About The 10%”, Neil Patel, an American techprepreneur and business journalist highlights the two most significant factors that determine the success of a startup.
“If you’re going to spend your time making a product, then spend your time making sure it’s the right product for the right market”
No market no business
According to Patel, one of the top reasons startups fail is because they make a product that no one wants. This results in a lack of a market need for their product. If you’re going to spend your time making a product, he says, then spend your time making sure it’s the right product for the right market. This is the one trait that all successful startups share.
- See also: Why South African startups fail
Your business is the whole business
Patel says entrepreneurs “should not ignore the business process and issues of a company because it is not their job”. In a startup there shouldn’t be a separation of responsibilities, this is because things are far “more organic” in a startup, he says, ” roles and responsibilities will overlap”. Successful startups understand this.
Patel says the CEO who thinks his only job is to lead, or a chief marketing who thinks his only job is to market won’t have much of a future in any startup.