When it comes to startups, it feels like it is a trend that fluctuates with time; experiencing its own ebb and flow. At one time, startups were the buzzword that had people excited about different businesses and their ideas.
Recently, it seems that there aren’t many startups that are getting much of the limelight with ease. While the fascination with startups might be ebbing at the moment, they are not a fading trend that will disappear.
Not the Stuff of Dreams
For startups, the main attraction lies in the ease of starting a business. Even older businesses have started out in the same manner. While Apple, Microsoft, Facebook, and other businesses have all shared the story of starting out in a small room, the same aspect cannot apply to the modern day startup.
Mainly, this is due to the fact that startups are more difficult to sustain. The setup is easier but statistics show that many startups do not manage to make it past the first year. Over 90% of all startups fail. The ease of setting up a startup is the same reason that it ends up failing.
There’s not a lot of revenue, investment and resources available. Turning a profit for startups is equally as challenging and with a limited amount of revenue and profits available; a business can end up in ruins very easily.
What Do The Successful Ones Do?
While 90% of startups do fail, the 10% that survive are the exceptions that make everyone want to indulge in them in the first place. Startups that are successful are the ones that are established realistically, with a real budget, market research, available revenue or funding and the skilled individuals who can form a solid core team.
For many startups, this is a formula that has been applied in a hit and miss methodology and has been responsible for causing the failure of the business too. Due to the vast numbers that failed, entrepreneurs and leaders now understand the need to conduct proper market research for their ideas. Not only does it help to ensure the success of a business, but it also sheds more light on how feasible it is to pursue that idea.
The Smarter Startups of Today
In a world where people are being told to follow their dreams and their goals, startups haven’t faded, they have simply become smarter. Entrepreneurs are becoming smarter about what they choose to invest their time and money in. With a 90% failure rate, there is a lot to be learned from the history of startups.
Nowadays, startups are being established on a more stable platform. From taking the time to accumulate the required resources, as well as ensuring that there is an actual need for their product, more entrepreneurs understand the challenge of starting a business in a limited time frame.
While startups are not fading, they are a trend that has showcased positive growth and are an essential part of almost every industry across the globe.