Signs of a Successful Startup

Many young entrepreneurs create startups in hopes of attaining rapid success. While statistically, such “unicorn” startups are exceedingly rare, success doesn’t need to look like a high ROI overnight. In fact, savvy entrepreneurs plan for the long term, finding a market niche that has potential for long-term gains. Even for well-prepared startups, competition, unprecedented market factors, or any number of variables can affect its outcome. Still, a few determinants can give a keen observer a sense of whether a startup will flourish or flounder.

A Solid Business Plan

Despite popular belief, the most successful startups are run by entrepreneurs that have worked in their industries for years before seizing an opportunity. The general business acumen gained from this experience makes startups more likely to stabilize and find success. Startups don’t get by simply by having a good idea; they survive because they have a plan going in that allows them to adapt to their market space. An entrepreneur should be able to answer questions about where they want their business to be in five years while also preserving agility.

Take, for instance, the initial iteration of Uber. Though the name has become ubiquitous, fewer know that it began as another cab service in San Francisco. After starting life as a more conventional company, Uber was able to make the change in their market that allowed them to grow to the size they are today.

Hiring Top Talent

While finding a talented business partner is important, having skilled employees at every level of an organization is huge in the early stages of a startup. Entrepreneurs will expect a lot out of their employees as they get off the ground, and that sort of determination only comes from keeping them engaged by staying communicative and transparent with them. 

Beyond just raw talent, it pays for startups to hire individuals that are aligned with the company’s mission or passionate about the kind of work that they do. Finding a good culture fit keeps turnover low and allows employees to leave their own mark on the startup.

Keep Spending Efficient

With so many different expenses to account for when starting a business, it can be challenging for a founder to suss out what is and isn’t necessary. The best startups are conservative about spending and are prepared in the case of financial hardship. Building this kind of resilience does take time, but saving early and often can put a startup on a path to success later on. This can mean taking more calculated risks or cutting unnecessary expenses like a company car or jet.

Communication

For the benefit of employees and investors alike, good startups should endeavor to be transparent with their own development. Since employees often have to wear multiple hats, being informed about what’s going on in other parts of the business is important. Similarly, a strong startup founder should be candid about both successes and setbacks. 

Success or Failure?

There’s no surefire way to ensure that a startup succeeds, but often, an entrepreneur can be aware of the risks inherent in their business and indicators that things are progressing as planned. The best entrepreneurs are as resilient as the startups they manage, taking challenges with stride and learning to adapt to the conditions of their business.