Four Traits for a Successful Start-up!
The start-up industry is booming without showing any signs of slowing in the near future. Singapore, in particular, has become an incubating base for topping world charts for talent and ranking 12 in the world’s top start-up ecosystems in 2017. The value of venture capital awarded to start-ups in Singapore exploded to US$1.2 billion in 2017, up from US$80.6 million in 2010. But while our local economy may be seeing an upturn in the start-up industry in recent years, not every new venture has what it takes to make a name for itself.
What makes successful businesses so successful? Aspiring entrepreneurs, pay attention – here are four traits that exceptional start-ups seem to have in common.
1. Resilience Pays Off
The beginning of every start-up journey is always the toughest. Multiple challenges and obstacles are inevitable in our increasingly competitive business world. This is why many successful start-ups who are well-organised in these initial stages and stay resilient in times of hardship tend to reap the fruits of their efforts tenfold.
One example is the Boost juice and smoothie franchise, one of Australia’s most successful start-ups which was founded on one simple idea – to make healthy living easy in a society saturated with fast food options. Despite facing multiple loan rejections from banks and going profit-less for three years, founder Janine Allis pressed on with her vision of a healthier Australia. Her efforts clearly didn’t go to waste as by 2004, Boost was expanding rapidly. The brand now operates across 13 countries and is a testament to Janine and her team’s resilience – a trait she attributes her company’s success to.
2. Understand the Industry
For a new company to be successful, you need more than resilience and a good marketing team. 42% of start-ups fail due to a lack of market fit for their products or services, underscoring the importance for start-ups to build their product centred on customers’ needs and wants.
A brand should solve an existing problem or offer new conveniences for consumers’ lifestyles. Take Carousell, a Singaporean mobile-shopping start-up, who started off with the objective of solving what the founders thought was a minor issue for themselves: decluttering their homes. Interestingly, their solution resonated with a wide audience – by 2016, Carousell managed to sell over 23 million listings and expanded across 7 Southeast Asian countries. Through the simplicity of a smartphone app, the founders refreshed the idea of clearing out one’s cupboards with a modern, technological twist.
3. Adapt and Evolve
The start-up landscape is inevitably fraught with unexpected opportunities and countless challenges. Thus, quick adaptability is integral to any start-up’s success, especially so in the exponentially evolving society of the twenty-first century. As with executing any concept or plan, a certain flexibility must be maintained in order to best scale a product or service to the market fit.
Transport-booking start-up Grab is a prime example: it has ridden on the bike-sharing phenomenon to roll out a bike-sharing venture, GrabCycle. These efforts have evidently paid off, with Grab currently sitting at the top of the charts as Southeast Asia’s highest-funded start-up – proving that success is derived from the constant monitoring of consumer needs, keeping up with competitor trends and modifying products or services accordingly.
4. Build a Community
Building a community is integral for any start-up to flourish. This parallels the concept of kyosei – the Japanese word for ‘living and working together for the common good’ – a principle that is also at the heart of Canon’s corporate philosophy. The idea of kyosei basically encourages start-ups to not only work well together, but also work for the good of society.
Start-up founders are rarely able to achieve success by themselves. This means that it is important to recruit employees that complement their personal strengths and weaknesses. As emphasised by Mr. Vincent Low, Director & General Manager of Business Imaging Solutions in Canon Singapore, building an optimal team culture is fundamental for companies. With good team dynamics, employees will be more driven and invested in the company’s vision and goals.
On the flipside, working for the good of society goes beyond simply making people’s lives easier or more convenient, it also includes looking ahead and adopting sustainable practices. Such foresight and planning not only value adds to society and the environment, but may also benefit an enterprise directly: a study from Nielsen in 2015 showed that 66% of customers were willing to shell out more money for products from socially responsible companies. Being sustainability-focused may prove to be daunting at first, but the long-term benefits definitely far outweigh the costs.
Start-ups often revolutionise societal standards and norms, while holding great potential as the seeds of future SMEs. Before jumping into the deep end, it is essential to have a well thought-out plan and business strategy. With these four traits in mind, you should be on the right track to leading your start-up empire to success!
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