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!
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 Gross' research 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?