Why do some businesses succeed while others fail? What exerts the greatest influence on the fate of a new business? Looking at the five factors – idea, team, business model, funding, and timing – many believe that that the team and idea execution are the most important. Surprisingly, team and execution rank second, and idea rank third. And a startups funding and business model are not initially integral to the success of a business because enterprises can launch and grow without having these two elements in place. The winning factor is timing. Execution definitely matters a lot and the idea matters a lot, but timing matters even more.
Look at Airbnb for example. Many savvy investors passed on Airbnb because they couldn’t imagine that people would open their homes to strangers. Yet the startup launched during the recession when people embraced new ways to bring in income. The timing couldn’t have been better. The recession also helped Uber attain success.
A company can fail too because it is simply ahead of its time. When it comes to startup success, timing is everything, and the best way to assess if the time is right is to objectively measure if the consumer is ready.
To Your Success,