The single biggest reason why start-ups succeed | Bill Gross - Deepstash
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The startup

The startup

The startup organisation is one of the greatest ways to make the world a better place.

You can unlock human potential if you organise a group of people in a startup with the right equity incentive. Yet, many startups still don't succeed because they lack the right timing.

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Timing is the most important

Timing is the most important

  1. Timing accounted for 42 percent of the difference between success and failure.
  2. Team and execution came second
  3. The uniqueness of the idea came third.
  4. The business model and funding are the least important. If you're underfunded at first but then gain traction, is very easy to get intense funding.

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Factors that contribute to start-up success

  1. The idea. However, the idea is not everything. 
  2. The team and execution. Mike Tyson once said, "Everybody has a plan until they get punched in the face." Much about a team's execution is the ability to adapt and to get punched in the face by the customer.
  3. The business model.
  4. Funding. Some companies with intense funding don't succeed.
  5. Timing. The idea is too early, and the world is not ready for it.

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Examples of timing

Examples of timing

Aside from a good business model, a good idea and excellent execution, timing determines if a company succeeds or fails.

  • Airbnb. People thought that no one would rent out a space in their home to a stranger. But the company came out during the recession when people needed extra money.
  • Z.com (1999-2003) was an online entertainment company with a great idea. But broadband penetration was too low, and it was too hard to watch video content online.  In 2005,  Adobe Flash solved the codec problem, and broadband penetration reached 50 % in America, perfect for YouTube to start and become a success.

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CURATED BY

anty

I’ve got 99 problems and I’m not dealing with any of them.

CURATOR'S NOTE

Bill Gross has founded many start-ups and incubated many others. He got curious about why some succeeded and others failed.

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