"This is a fantastic time to join the business world, because business will change in the next ten years more than it has changed in the last fifty years" this quote by Bill Gates holds true in today's world and we've also seen many new business houses, companies and startups established from the start of this millennium. Talking about startups in particular, it is a young company founded by one or more entrepreneurs to develop a unique product or service and bring it to market. Startups have high rates of failure and face high uncertainty, but only a minority of them do go on to be successful and influential. Some famous Indian startups are Wow! Momo, Zomato, Ola cabs. So why do some startups fail and some become a billion dollar company.
There are essentially five factors which come into play for the success or failure of a startup, namely : Ideas, Team, Business model, Funding and Timing. First the idea, an idea is a starting point from where an entrepreneur or an individual gets an idea to initiate or innovate a product or to provide services. Then comes the team, which is equally important. The group of people with their different innate skills, ideas, philosophy and approaches come together with the company. Their execution and adaptability come into foreplay for the success of the startup. Then comes the business model, how the plans and policies would be implemented, it also includes the concept and detail design of the business. Then comes the monetary part, Funding which is essential as the company will need a huge amount of capital to carry out his operations. Funding can be through a loan, shares or by friends and family. In today's era, funding is least of your worries because there are many companies, equity firms, business organization and government, which are much interested in investing in your startup if they like your business model and idea. The main problem arises with timing. Is it very early? Or is it too late? Or you're in advance and you've to educate the world? Here, at this point you've to be very cautious.
Out of these five, timing is the most important factor for the success of the startup. Because failed startups like Kozmo, Flooz and Friendster do have a high funding and an average business model but they lack in timing. Whereas the successful startups like Instagram, YouTube and LinkedIn have incredible funding and business model at the time of their execution, but they were, and more importantly perfectly timed. So now you've got an insight into the essence of startups, so what are you waiting for, brainstorm, think creatively, organize a group of people and you'll unlock the human potential in a way which were possible never before.