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Keys to Successful Startup

September 3, 2006

Q- I want to start up a business and would like to know what the keys to success are? I want to be very successful; I do not want to be a failure at all. I have never owned a business before, but I really want to be in control of my own destiny.

First, you just cannot let the fear of failure stop you in any way, as fear creates paralysis of action. While fear is a real and necessary emotion, it is frequently not based on the situation at hand. It is normally based on something that happened when you were a child. Therefore, you need to look at starting a business with a very thoughtful approach and not let your emotions cloud your decision-making.

The first step in being successful is to find an idea or business to develop, and then do it well and do it better than your competition. So many of today’s businesses are just not performing very well, and customers are always looking for a better way to get something accomplished.

Google is the classic example of a firm that clearly wanted to provide a search service that was simple to use, yet was still robust. Not a complicated process to do, but to the end user, a significant improvement. Whatever business you go into, make sure that you have a commitment to offer improvements over what is out there in the market. Being a copycat of another firm just does not allow your firm to stand apart from the competition.

While ideas are great for a business, it is the execution of the idea that pays the dividends. Bringing a product or service to market is so much more valuable than coming up with an idea. There are more than enough ideas for businesses, but too few people who are willing to step forward and bring them to market.

In terms of keys to success, I think the first key is that you have to have great staff. Nothing kills a new business faster than inadequate or incompetent employees. You have to make it your priority to get great staff and retain them as long as you can.

The second key is to insure you come to market with a product that customers really want and find of value. Many great business startups with cool products and services still fail, as customers just do not see value in their product or service.

The final key is to make certain that you do as much as you can to keep spending as low as possible. So many businesses fail because they do not control their costs and they run out of money. Controlling your expenditures by not spending on any unnecessary items is a vital key. I have walked into many small businesses only to see the owner’s office lavishly decorated. This tells me right away that this owner is not a very good steward of the money he or she is investing in their business.

Thanks for the great question, and please feel free to write back to me if you should have any further questions.