Seven Tips to Increase the odds of Your Technology Startup Business’ Success

Starting your own business, takes time and dedication. Technology Startups are up against fierce competition but with new developments and innovation, there is also enormous opportunity. McSweeney & Ricci Insurance offers insurance programs for every stage of your startup business. Your insurance package will be tailored to fit your specific needs and adjustments will be made as your startup business progresses through each stage. Take a look at the great article below from on how to increase your Startups’ odds of success and call us to discuss ways that we can help grow your business.

In many ways, there is no better time to be an entrepreneur and take a chance on that new business venture you’ve always wanted to launch than now.

The technology industry is bustling with innovation — new products built on emerging technologies launch daily and the market is ripe with opportunity for the next big, disruptive idea. While established organizations are finding it difficult to keep pace with technology disruption, there are huge opportunities for savvy entrepreneurs and nimble startup ideas.

Today’s startup landscape welcomes new players and is supported by a strong venture capital industry with ample funds to back projects. There is also an active ecosystem where experienced entrepreneurs are directly investing in ventures and offering their mentorship to executives just getting started. Under these conditions, even the earliest stage ideas have the opportunity to scale quickly and succeed.

Despite a welcoming startup ecosystem, not all entrepreneurs will experience success. In fact, studies have found that as much as 75% of venture-backed startups fail (paywall) and the failure rate of all U.S. companies (registration required) after five years was over 50% and over 70% after 10 years. That’s an incredible reminder that success is not guaranteed. While the entrepreneurs behind thriving startups are often mavericks — with a certain “X” factor that is difficult to replicate — there are steps entrepreneurs can take to increase their chances of success.

1. Start with a clear purpose. Every entrepreneurial journey must be built on passion for your core idea or purpose. Entrepreneurship is a challenging path, filled with ups and downs that can make even the hungriest of leaders feel like giving up. Startups experience make-or-break moments and those that survive do so because of their commitment to the core purpose outweighing all other hurdles. Understanding why you are trying to build something is more important than how, and this commitment will provide direction in times of uncertainty. For instance, Amazon’s vision is to be Earth’s most “customer-centric company.” While the company’s execution and offerings evolve, its core mission never waivers and guides its roadmap every step of the way.

2. Be audacious. Steve Jobs said, “Those who are crazy enough to believe they can change the world, are the ones who actually do so.” Entrepreneurs can’t break through the noise with a new product by making incremental changes — they have to think like a maverick and take big bets. Being audacious is no longer a choice. Larger companies will have the same ideas, but will follow the obvious path — so entrepreneurs need to identify new, more innovative routes forward. The willingness to take risks to achieve change is what makes Jeff Bezos, Elon Musk and Jack Ma so successful. This quality also makes small startups dream big enough to take on giants like Amazon.

3. Drive innovation. Innovation is the foundation of a startup and the key value an entrepreneur brings. To drive innovation, a deep understanding of the customer and their pain points is critical. You will never discover those pain points in a conference room — you must have a wealth of real-life experiences to pull from to relate to customer needs. The most powerful innovation often happens by connecting the dots across different areas such as life experiences and passions — which can lead to market-defining ideas. Of course, experience and passion alone will not be enough. Entrepreneurs must also have deep product and tech knowledge built on a foundation of engineering expertise.

4. Build a balanced team. It’s impossible for any individual — however talented — to have all the skills required to build a successful business on their own. One mistake entrepreneurs frequently make is seeking out leaders in their own image, rather than looking for those with complementary skills. It’s imperative to build a balanced team — not only incorporating professionals that fit culturally but also seeking out a diverse set of backgrounds and skills.  Some of the most notable partnerships have been built on this premise, including Larry Page and Sergey Brin at Google.

5. Be careful with fundraising. A lack of funding can lead to a startup’s immediate and irreversible failure. Many entrepreneurs try to delay funding to maintain their stake in the company, but this is risky, so secure the future of your venture first with adequate funding. If you are raising capital for the first time, you should be prepared to let go of control of a large portion of your company. On the other hand, raising too much capital can also be the kiss of death. Many entrepreneurs fall into a never-ending cycle of raising capital and defining their success based on their latest valuation. Stay focused on solving customer problems and not building your business to define your next valuation.

6. Be patient. The entrepreneurial journey can be a rollercoaster of ups and downs and for many, this process includes the possibility of failure. Therefore, you need to have the patience to play for the long term and the resilience to bounce back. If you start with a bold vision, after two years many entrepreneurs will feel that they have underachieved and may consider giving up. If you can weather the storm and stay committed to your purpose, in five years’ time, even those with the most audacious goals are often able to surprise themselves.

7. Manage opposites. With varying demands on their time and attention, entrepreneurs need to manage and balance many opposites. While it’s important to have a sharp focus on execution, a strategic mindset is also necessary. You need to survive both in the short term while also building for the long term. You should also provide outstanding customer experience and growth while ensuring profitability. While these opposing demands can quickly become difficult to juggle, they are inevitable, and the ability to manage this duality will be one of the most important skills for 21st century entrepreneurs.


Source: May 31, 2018

“Seven Tips To Increase The Odds Of Tech Startup Success” by Nitin Seth-Community Voice, Forbes Technology Council

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