What Do Startups Need To Be Successful?
What Do Startups Need To Be Successful? Photo by Danielle MacInnes on Unsplash

You have an idea and want to do a startup company. That is fantastic! But do not start building products or trying to buy a space for your business just yet. Startups fail at a swift rate. About half of all startups fail within the first five years in the U.S., and almost 20% do not make it through the first year.

There are many reasons why startups fail, so here are the four key needs you need to give your startup a fighting chance.


Four Key Needs

Before you begin your startup, you need to fulfill the four key needs. Anything else beyond the four key needs is an appendage to the body of the company. These key needs are in no particular order.

1. Fill a Need

First and foremost, your startup needs to fulfill a need. The new product or service should be better than anything that is already apart of the market. The goal of your startup is to fill a need that is not currently being met.

For example, opening a donut shop in town against three other donut shop competitors is not an ideal startup. But opening a smoothie shop in a town full of donut shops will fulfill the need for a healthy snack option.

2. Need to Know your Market

Knowing your product or service is vital, but you also need to know your market. Knowing your market allows you to prepare your product or service to enter the market. Know seasonal trends, economic trends, and even your competitor's trends.

A part of knowing your market is understanding the associated financial numbers needed for your startup. Conducting extensive research via study groups or surveys is an excellent way to gauge your market before heading to meet with investors. The research gathered will help you to present your startup better when it comes time to pitch.

3. The Need for Dedicated People

A business is nothing if you do not have people to operate it daily. Finding dedicated people who share the vision of the startup is vital to the success of the company. The dedicated team members may help market the product or service, build infrastructure, set up a delivery system, or even manage the finances.

Startups are stressful, and having extra hands to manage seemingly menial tasks will allow for more significant growth and improvement for the company overall.

4. The Need for Financial Backing

Every startup from the small corner lemonade stand to the multi-million dollar company needs financial backing. Financial backing can and will come through multiple sources. These sources may include personal money, family money, angel investors, crowdfunding, venture capitalists, etc. Without some form of money, a startup will only ever be a dream, so the need for financial backing is essential.

In the End

Startups take a lot of work and dedication. So much goes into making them successful, but there are four key things you need to make your startup work. Having these things can give your startup a greater chance of succeeding.