Early Signs That Your Startup Will Succeed
Startups are a model of companies with a high level of projection due mainly to the use of technology in their construction and development.
Technology is increasingly helping to shape new business ideas. Undertaking a new project through emerging companies supported by technological resources available is a growing fact but how do we know if we will really have a successful startup?
Some of the early signs that your startup will be successful are the following:
- Business model validated by customers.
Customers are willing to pay the price you are asking for your product or service?
Important: Create customer before product, or build a customer base while building your product !!!
Having metrics that tell us that we have a clear niche market, that are willing to pay for our product is the heart of the business. A successful startup scales its growth on the basis of proven, iterations, pivoting, steady and paying customers.
You should validate your idea with Customer Development, relying on the creation of prototypes of your product or service (This action is part of the Lean Startup Methodology) that will allow you to achieve a final result based on feedback from your customers, without wasting resources and with the least possible risk.
- Clear business strategy and critical milestones.
Startups with measurable and steady strides are poised to succeed!
- Setting a commercial strategy for your startup means deciding how you are going to sell your products,
- how they are going to market, on what platforms, etc.
- planning and moving towards national and global expansion
- if you have already identified the right channels and your customers feel identified with your communication language, it means that you are on the right track.
All of this action with an objective, agenda, clear milestones and plans, guarantee the startup succeed.
- Cash control.
Your company is self-funded or you have venture capitalists behind? To have a healthy startup, well-funded, you have to do a lot of careful assessment and planning.
Money is the most important factor towards startup stability. “Evidence of solid financial backing means someone with more skin in the game than you have done a lot of careful assessment and planning,” says startup consultant Tommi Wolfe.
From another basic point of view: In the management of a startup, treasury occupies a very important place. It is just as important to increase the levels of sales as it is to deposit the money that comes from them.
If your startup has controlled the payments to suppliers and if you have been able to negotiate periods beneficial, you will have optimized the management of your cash flow to have the monetary resources you need at all times.
- Great and motivated team.
No matter how visionary you and your business idea are, it’s the people that you surround yourself with that can ultimately make or break your startup.
If you’ve been able to successfully recruit the right people in the right positions, is a sign that your company is thriving and you can be certain that your startup is something that others can get behind and support, but if If you don’t have the right team, you won’t have the ability not even to get customers.
Tips to create a motivated team:
- Regularly meeting with all the members of your team, communicate with all and be transparency
- Engaged employees don’t leave the company. That engagement and excitement is contagious, especially in the early days
- Make sure that you’re paying at least as much attention to them as you are to your customers, if not more
- Share your victories, and be honest about defeats
If you have a motivated team with ambition and desire to work, it is certain that your company will develop and grow.
PS: If you are interested in creating your startup or business and don ́t know how to begin or if you have a startup and need to know important aspects to succeed I recommend the Lean Startup Incubation Program, directed by the UPC School and the Barcelona innovation hub: Bcombinator.
It is an Immersion Program to create your Business Project that combines classes in the UPC School and an Incubation program in Bcombinator.
The program is taught and mentored by prestigious entrepreneurs who will help you develop or consolidate your business project with the best guarantee of success.
For more info: Lean Startup Incubation