Success of a Startup

There are many factors in the success of a startup. Nearly 90% of startups fail. I feel that an entrepreneur must analyse how equipped he/she is while starting up. A broad framework to use, according to me, is as follows:

A Good Idea (30%): the idea should have a competitive advantage/USP to help the business scale and sustain.

A Good Team (40%): a good team having all required skills to execute the idea is the most important factor having the maximum weightage. Ideas are a dime a dozen, it is the execution coupled with idea which leads to success. A good team ensures better executional capabilities.

A Big Market (15%): the market should be big enough for the business to scale and to pivot if required.

Low Competition (15%): A newer, novel idea always has a better chance of succeeding due to the early mover advantage it gets in such a space.

The idea and team play the biggest roles and should be looked upon very seriously. An entrepreneur must rate his/her startup on each of these factors and I feel if the final score (weighted average) based on the above exceeds 60%, its a signal to just go for it!

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