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Startups – Which Ones Succeed and Why?

Startups are literally a journey into the unknown and entrepreneurs need to be comfortable with taking on ambiguity, uncertainty and multiple challenges. Unfortunately, on average, 9 out of 10 startups will go out of business, and the remaining that are able to survive and succeed are the ones that capture the qualities outlined below. These qualities are generally deeply ingrained in the character of successful entrepreneurs and is something that we see at Cofounders Lab, one of the largest networks for entrepreneurs.

1) Vision

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) Speed

Getting things done in a quick manner is one of the many reasons why startups are able to reach their goals and milestones. It makes a difference when a startup is able to launch on time or when it’s able to move much faster than competitors. Successful startups never delay the process of getting things done, and have to work as much as needed until something is complete. The most productive people are the ones who make the most of their time. Regarding speed, having knowledgeable people in-house really makes a difference. I believe that the faster you can make the mistakes, learn from them and improve your offering, the better.

3. 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.

4. Social skills

Networking is another reason for startup success. A founding team that knows powerful and influential people in the business is completely priceless and can open the doors to partnerships and to find angel investors in a New York minute. Great startups have an outstanding CEO who is able to work his or her way into any organization. On the other hand, startup leaders need to inspire people and give them reason to follow them through the uncertain journey, often where team members are required to make many sacrifices such as work/life balance, salary cuts, limited or no health insurance and so forth

 

5) Discipline

Discipline starts with self-control and is a product of a strong self-imposed personal standard. Without discipline, startups fail to succeed in business even if situated in the best economy. Self-discipline leads to positive work ethic, and work ethic leads to getting things done effectively and efficiently. It is critical to have all the team members aligned and working together to get to the finish line