Key Ingredients for a successful startup

It really boils down to the theory of "the survival of the fittest". For example, consider the role of innovation at Apple. The company was founded on the principle of changing the world and "thinking differently", yet in the 80’s became stagnant due to failed products, poor business decisions and a lack of creativity after Steve Jobs’ departure. With his return to Apple in 1996, the company re-ignited its innovation engine and has become the global standard – not only for PCs – but for the entire category of consumer electronics. Their product mix spans across hardware, software, audio, video, PCs, servers and cloud computing. Talk about how to "Think Different"!

The second point is the most important one in creating a successful start-up: the attitude of the founders. It is a vital aspect of success, as it deals with letting go of one's own "ego" – the biggest roadblock for founders in building a successful business and forming a winning team. Generally, successful founders come with "type A" personalities, a necessary ingredient in making a start-up successful. Type A personalities come with a healthy mix of personal ego, impatience, a sense of urgency, aggression and ambition – all qualities needed to push a start-up through each stage in its lifecycle. However, the key for successful founders is to understand when to set aside their egos and how to focus on core business essentials.

The young entrepreneurs should focus on solving actual problems and not the perceived ones. One must look at the business problem with critical eyes from outside rather than complacency as an insider – at the same time mindless of the trap of the endless loop of "analysis paralysis". Make quick but thoughtful, well-researched decisions. Ask yourself honestly – why will you succeed? Why will customers buy products from you? How big is the problem? If the problem is not big, chances are either there are many "me-too" players already in the market or the barriers to entry are very low.

Spend time in understanding of your future customers and their behaviors. Once you have a clear problem definition to solve and good understanding of the customer, be incredibly focused on that – and that alone. Remove all other distractions from your mind, follow your passion and commit to your own success relentlessly.

Start with small wins and expand rapidly. Be realistic in approach. Do not attempt to change the behavior of individuals overnight while proposing a new product/service. A start-up that requires a change in the fundamental behavior of an individual overnight will be met with three times more failure rate than the ones which do not require this change. Rather, focus on innovation and let that become a driving force within your team, driving your product mix, your value proposition and your entire organization.

The author of the article is Ajay Jain, the President and CEO, Quantum Secure