Establishing a new startup company is no easy task. According to StatisticBrain, 25% of startups fail in the first year. Those numbers only rise as time goes on, to 36% in year two and 44% in year three. By the fourth year, roughly half of all startups have failed. There are a number of factors that influence a startup’s growth, and eventual success or failure, during its formative years. Throughout this post, you’ll learn about the important factors to watch for to ensure the successful growth of your company.
Timing
Sometimes the best ideas fail to take off because the timing simply isn’t right for the product or service offered. Consider the automobile that now dominates the American landscape. Henry Ford did not invent the automobile. In fact, the car existed for at least two decades before Ford. However, his automated assembly lines enabled more efficient and affordable production, passing the savings on to consumers and allowing the automobile to reach a wider market. Your business will have to contend with the era you live in. If your idea does not fit the current time or manufacturing and production is not affordable, your business could fail.
On the other hand, your business could be a smashing success if the timing is perfect. If demand for products or services such as yours is through the roof, you’ll enjoy success from the early stages.
Competition
How many other companies offer a similar product or service to your planned company? Competition is great for consumers, because companies are forced to discount prices and run sales to attract the limited number of consumers in the area. For your business, competition can mean slow or no growth.
Value Add
Does your product or service offer a value add to consumers? Is it a unique product or selling proposition that competitors don’t offer? This will directly impact the popularity of your product among consumers. If your product isn’t unique compared to similar products, why should consumers ditch a brand they know to purchase from your company instead? Before you launch your new product, consider options for making it unique or providing it to consumers in a unique manner.
Big Customers and Standout Products
Your business will receive a massive boost if you can land a major customer that makes a huge purchase. For example, if you have a concept for a mobile app that is attractive to Apple or Google, it could become a core offering on iOS and Android operating platforms. This would put your app in front of millions of smartphone users around the globe.
Employment
The quality and knowledge of your first employees will play a big role in the success of your company. These individuals provide the support your business needs to succeed. When they understand the product and the target market, your company is better positioned for success.
If you keep these factors in mind as you launch your startup, you’ll be able to keep an eye on changes that impact that potential growth of your company.
