Introduction; I did a research on 5 successful companies that succeeded and 5 companies that even intense funding and business models but didn’t succeed. I tried to look at what factors actually counted the most among the success and failure of these companies.
1. TIMING ; Timing accounted for 42% for success and failure. Let’s use Airbnb as an example, they came out during the height of recession when people really needed extra money and it made people overcome their objection of renting their home to a stranger.
2. TEAM/EXECUTION; Thus came is second with 32%
3. IDEA; Idea accounted for 28%. I’m not saying the idea is not important but it surprised me that idea was not the most important thing, it’s actually timing.
4. BUSINESS MODEL ; This accounted for 24%. Business model makes sense to be that low. You can start out without a business model and then add one later if your customers are demanding what you’re creating.
5. FUNDING ; There is usually intense funding for start ups so it’s the very least. It accounted for just 14%.
