What Makes a Business Startup Successful?
Let’s face it: companies want only the best employees. You’ve probably realized this if you’ve ever applied and interviewed for a job. Everyone has different backgrounds and experiences, which makes the hiring process difficult. Every company wants the best fit possible, and finding the perfect person for the job is especially crucial for business startups.
In fact, for startups, the first 10 employees will either break the company or make it into a success. Each employee is worth 10 percent to the company. Small companies depend more on each individual employee than larger companies.
Given this fact, companies need to hire the best employees to represent the business and help it grow. But what traits should they be looking for?
Finding the Right Skills
While it’s important to find someone with the right personality and appreciation for the company culture, it all comes down to skills. The two most important skills are business skills and technical skills. Business skills are important for performing market research and securing funding. Technical skills, on the other hand, can help with the computer side of the business and assist with implementing new ideas.
Is one skill more important than the other? Not necessarily. Studies show that companies that have both skills are more likely to profit from new ideas. However, the most benefits are seen when the employees have a mix of business and technical skills, as opposed to the founders having business or technical skills, and hiring employees with the complementary skills.
What Leads to Failure?
Most businesses fail after a decade. Statistics show that more than half fail after five years, and 70 percent fail after 10 years. What causes companies to go under?
According to one study by Statistic Brain, lack of focus, motivation and commitment were the biggest reasons. In a study by CB Insights, the reasons cited were no market need, lack of money and not the right team. Notice how team was #3 on the list? Having the right team is more important than people think. In the second study, the reasons focused more on the business and team rather than the mindset of the entrepreneurs.
The Startup Genome report focuses on factors that lead to success. The top factor was passion and commitment driven by impact. Willingness to adjust was also a top factor. Sometimes founders are stubborn and get stuck in their ways. A balance of the right technical and business knowledge ranked #9 on that list.
Learn More About Business Startups
If you’re looking to create a business startup, you have a long road ahead of you. Most startups fail, but some do succeed. You want to make sure you take the right steps to ensuring your business’ success.
Orlando business startup lawyer B.F. Godfrey from Godfrey Legal has several decades of experience helping entrepreneurs start and grow their businesses. No two businesses are alike, so get legal help today and poise your company for growth and success. Contact Godfrey Legal at (407) 890-0023 for a consultation.