One of the reasons for starting a business is making a profit and offering services or products to the clients. However, research shows that 90 percent of companies that begin at any particular time fail. In case you intend to start a business, it’s critical to learn from both the startups that fail and those that succeed. The lessons that you’ll draw from those businesses can assist you in understanding the dos and don’ts of managing you’re your venture till you succeed. This blog explores some of the startups that have emerged successfully to become leaders in their industry in the recent past. Keep reading to discover what these startups did correctly to appear victorious.
Applying a unique model
Some startups that have succeeded have used moved out of the standard models and used a unique and disruptive approach. For instance, people used to visit brick-and-mortar casino rooms to play the lottery. However, technological development has made it possible for people to play games online. For instance, Lottoland sells online bets and makes it possible for many punters to play the lottery. Because of its innovativeness, Lottoland is a successful venture and a leader within the lottery industry.
Through technology, it’s possible for companies to automate their workflows. Although to apply technology comes with a cost, it’s critical for a startup to automate some of its processes. For instance, in 2000, MailChimp succeeded because of the automation of its operations. The design company’s clients wanted e-mail newsletters, but the CEO was reluctant at first. However, when he responded positively to client demands, MailChimp became a successful venture and a leader in its niche.
Begin with a capital-efficient product
Some of the startups that succeed may steer clear of competing with giants in the industry. They instead strive to fill specific gaps present in particular lines of business. For instance, in the case of AdaFruit Industries, Limor Fried, started the electronic e-store while undertaking her studies at MIT. Applying the DIY approach, she started slowly by assembling locally found second-hand parts. Presently, her company is worth $32 million, with 85 employees.
The founder of SparkFun, Nathan Seidle, also started his venture slowly by selling electronics materials to engineers interested in venturing into exotic fresh sensors and systems. Currently, SparkFun is a successful online business that makes over $32 million annually with 154 workers.
Aim at solving an existing challenge
Startups that emerge to solve a current problem are more likely to be successful. The problem can be an essential thing, like creating a modern mousetrap of the latest technology platform. For instance, Shopify founders wouldn’t get an e-cart for their e-commerce. They decided to develop their solution, an idea that was to benefit many individuals. They formed a venture that existed independently, which has seen them earn vast sums of money.
Leverage on your skills and ideas
You don’t have to have a lot of money to succeed. For instance, Jon Oringer started his Shutterstock venture as an amateur photographer. With his skills in software, Oringer used 30,000 photos from his library to start a business that is presently $2 billion.
Many startups fail after a short time. You can learn a lot from those that have succeeded as captured and explained above.