Why Start-Ups Succeed or Fail
Recent studies have shown that the five factors leading to the success of new start-up businesses are:
- Timing accounted for 42% of the differences between success and failure. Is it the right time to do what you are considering? This factor is more important than all the others in determining your success. Is it too early, too late or just the right time for this business to succeed? Is the time right for you to begin this journey? Owning a business is not a sprint, it is a marathon with no finish line; but a satisfying one.
- The second-most-important factor is having the right team and the ability to execute your plan.
- Surprisingly, the business idea was third in the hierarchy. It had been thought the idea was the most important factor.
- Next most important was a business plan. Does the start-up have a clear path to generating revenue?
- Fifth and last was funding.
There are, of course, many other factors contributing to the success or failure of any start-up but focusing on these five will get you headed in the right direction. SCORE Citrus/Levy County can help you with every aspect of starting a business, free of charge, so give us a call at 352-249-1236.
Here are some additional tips from successful entrepreneurs for you to consider, whether you are starting a business or buying an existing business for the first time:
The most important one – Do what you say you will do. Not only in your business life either. The rest are in no particular order.
Plan your work and work your plan
Have a passion for what you are doing
Determine how much you are willing to sacrifice
Hold others accountable and be accountable yourself
Working smart is better than working hard
Prepare for constant change
Develop a disaster recovery plan – its hurricane season!
Hone your leadership skills
Your employees are your most valuable asset
Hire smart rather than manage tough
Your employees are internal customers – listen to them
Pay attention to your numbers
Profit matters more than revenue
Price your product/service for profit
Listen carefully to your customers
Learn how to acquire customers and to keep them
Outperform your competitors
Join industry groups and the Chamber of Commerce
Become an expert in your field
Marketing matters – have a plan
Use a complaint as an opportunity to improve
Keep standards high and pay attention to details
Don’t give up – success has more to do with persistence than perfection
Have a good attorney and accountant – and listen to them
Be a small business that plays big
Evaluate what’s working and pivot as needed
Celebrate your successes – both big and small
Don’t go it alone – get a SCORE mentor
And last but not least – pay your taxes on time