The Biggest Reason Why Start-Ups Succeed!

23 Jul The Biggest Reason Why Start-Ups Succeed!

Posted at 10:30h in by Melissa Wilson  •  0 Comments

Why are some start-ups super successful and others just fail miserably? The secret to success is not always obvious. Here at KYB we help our clients find the road to success! 

Watch this short but compelling TED Talk by Bill Gross founder of Idealab, which outlines the top 5 factors in determining if a start-up will be successful.  

Gross has a lot of experience with start-ups; his company Idealab has started over 100 new companies and helps many more. 

"Everybody has a plan until they get punched in the face"   - Mike Tyson 

As Gross points out, this quote is very true about businesses as well, "So much about a team's execution is it's ability to adapt to getting punched in the face by the customer."

Companies that were among Grossresearch were: (successes) Tickets.com, NetZero, Cars Direct, YouTube, Instagram just to name a few. (failures): Z.com, Insider Pages, Friendster, Webvan, Kozmo, My Life, Desktop factory and People Link.

 

 

The top 5 factors that accounted the most for success and failure across all companies. 

1. Timing:  42% of the difference between success & failure depended on the release timing of your product/services.

2. Team/Execution:  32% 

3. Idea:  28% 

4. Business Model:  24% - You can start out without a business model and then add one later if your customers are demanding what you're creating. 

5. Funding:  14% - If you're under funded at first but you're gaining traction, especially in today's age, it's very easy to get intense funding. 

 What Steps is Your Company Taking to Ensure Success?  

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