7 Secrets of Successful Startup Businesses

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A startup business is defined as one that is entrepreneurial in nature and is designed to grow rapidly, meeting a need that is newly emerged. Startup businesses, companies, partnerships, or organizations are usually bankrolled by the founders, or by venture capitalists who have faith in the founders’ abilities to make the company grow rapidly. If the startup does well, and meets or exceeds the expectations of the people involved in its creation, the payout, or return on investment, can be astonishingly high.

By its very definition, a startup is a bold business venture, with a boatload of risks being taken by all parties involved. Some startups take off, grow amazingly, and never look back. Others start strong but soon fade away. And yet others flop before they ever get going. So, what’s the secret of successful startup businesses? They have more than one; read on to find out what they are.

They Choose a Large Market

In order to grow rapidly, a startup needs a large market in an industry with lots of room for growth. An industry with a history is best, to help predict where improvement is necessary. For example, if your company is going to offer a new and improved mousetrap, you need to know which aspects of the historical mousetrap need to be improved on. If the industry has an outlook of annual growth in the double digits, so much the better.

They Know How Much Capital is Needed

The best-laid plans will never materialize if there isn’t enough money to cover costs. Successful startups start with a master business plan that outlines all hard and soft expenses for the first year and beyond. The total, plus extra for unexpected costs, is what they ask for from their investors.

They Have Multiple Sources of Capital

Using your favorite rich uncle as a source of cash is all well and good, but what if he changes his mind, goes broke, or suddenly dies? Do prevent the loss of your company before it even gets started, do what successful startups do and have more than one source of cash lined up.

They Position Their Brand Early

Your company’s image is an important part of your brand. Starting with the initial launch, make sure your market perceives you in a positive light. This is your one chance to make a great first impression, and gain loyal customers. Successful startups get it right the first time, rather than spending money later to try to overcome a poor image.

They Know the Competition

If you are baking a better cookie, you’re probably aware that you’re not the only company with the same idea. All newcomers to the game are your competition, and so are the old standbys. Be prepared to outsell all of your competitors by rolling out new, improved products regularly. Are all of your cookies chocolate chip? Try selling a variety of flavors; your brand will be more exciting and you might gain a whole new market segment. While you’re at it, keep tabs on the competitions’ new rollouts, and try to stay one step ahead of them. If the market shrinks in the future, you want to be the company that is still in business. Hamptoncreek, the natural food producer, rolls out exciting new products regularly.

They Want to Learn

Founders of successful startups are eager learners. They set their egos, preconceived notions, and bad habits aside, then tune into the experts who are willing to share their knowledge. Founders who find success are those who are willing to open their ears and minds to new information for the duration of a company’s life.

They are Ready for Action

Granted, every new business needs a plan, but over planning can cause a business to stumble before it even gets out of the gate. All the planning, journaling, and spreadsheet-creating in the world won’t make you a dime if you don’t jump in and focus on generating revenue. Successful entrepreneurs are always ready to don a new hat and get some action.

On the surface, successful startups may seem like any other business. They all require a market, a product, and a way of connecting the two. But the habits of a successful business are aimed at hitting the ground running, staying strong, and never looking back. By embracing these secret habits, and committing to being a lifelong learner, your company can be at the top.

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About Dequiana Jackson

Dequiana Jackson, Founder of Inspired Marketing, Inc., helps overachieving women entrepreneurs conquer limiting beliefs and create marketing plans that grow their businesses. This includes one-on-one marketing plan development, digital product creation, web design and content marketing. Dequiana is the author of Know Your Business: How to Attract Ideal Clients & Sell More and runs the award-winning blog, Entrepreneur-Resources.net.

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