The Key Factor of Successful Start-Up Company

by Ronaldi John Pierre Soselisa

In this era technology is the most important tools that people always use in every
single aspect of their daily life. Smartphone, notebook, computer, tablet, internet, etc is a
technology tools that already become the most useful tools in human entire life and it become
a culture and habit in the society. Not only for the technology tools but also the technology
application especially social media is becoming the most top uses application for human even
it can make people addictive about it. This life changing moment because of transformation
of the revolution industy brings a lot of impact for human race, there is a good impact but
also a bad impact. It’s like a double sword edges that sometimes can bring multiple effect for
people when their use it, is that a good one or a bad one impact for themself. Basically this all
of the tools that we already use it right now is develop by a technology company that have a
very kind goals that is to make world a better place and also to help human life more easier
with the help of the technology.

Technology has become the symbol of transformational life for the world and also
became the symbol of distruption for all over the culture and tradition that today has not
really very relevant anymore. In this day technology company has take a massive role to
make a change in the world, that’s why many people in the world try to competing each
others to build a start-up company with the mission to solve a social problems and also
became the first one that can bring an absolutely great impact for the world. Start-up is a
starting company that right begin running a business in the period of time between 3 to 5
years from where it started. Start-up company idea is very iddentic with a technology
company because theres a lot of technology companies that just starting their business and
using a technology as their tools to improve the business model that their try to over in the
society. Back to the definition itself, start-up is not only a company that running only in the
sector of technology but also every busineses that just start to running a business in every
sectors in life is called a start-up.

Start-up organization is the greatest form to make world a better place. It’s because of
the impact that can start-up company create or brings to the society and the world is very
massive and a very huge social impact, even it can solve a root cause problems that became
the reason or the source of the certain issues in the world. That’s why start-up has become a
very valuable company in this era because of the impact that it can bring so many investor
from venture capital in all over the world take risk to invest in the start-up company even it
didn’t have any track record before but their very brave to gambling for investing in that. If
you take a group of people with the right insentive and organize them in a start-up company,
it can unlock human pottential in away never before possible and you get to achieve the
unbelieveble things that happening because of that. But the question now, if the start-up
company is the greatest form to make world a better palce because of the massive and a huge
social impact that it can brings and also many investor in the entire world competing each
others to investing in a start-up company, so why theres many start-ups failure ?
 According to the data from We Are Social in 2019, the failure rate of the start-up
company was around 90%. It’s a huge numbers of data that can give a big picture of the
reality situation and condition about how competitive is the start-ups area of field or the
industry itself. Based on the research concludes 21.5% of start-up companies fail their first
year running the business, 30% of start-up companies fail in their second year, 50% of start-
up companies fail in the fifth year, and 70% of start-companies fail in their tenth year. The
reason of the failure was so many that is because running out of money, being in the wrong
market, a lack of research, bad partnerships, ineffective marketing, and not being an expert in
the industry. Based on this data, we can see together that many start-up companies can’t
survive enough to running the business because of many other reason, so that means driving a
start-up company is a very challenging work because of the potential of failure that happen
anytime during the period of time running the business in other words this industry is full of
uncertainty.

So what actually matter the most or the key factor for start-up company to become
successful and what is the different between a successful start-up company and the failure
one ?

Bill Gross, one of the successful businessman and investor in the world do a research
in order to find out what actually matter the most for start-up company to become successful.
He found out that there is a 5 essential elements that lead a start-up company to success that
is ideas, team/execution, business model, funding, and timing. The research take around 200
start-up companies include the successful start-up companies and also the failure start-up
companies. Basically the research that his doing is by comparing a certain start-up companies
that already success and survive to become a unicorn or a decacorn such as airnb, Instagram,
Uber, YouTube, LinkedIn, and many more, together with a certain failure start-up companies
like WebVan, kozmo, pets.com, flooz, friendster through using the 5 essesntial elements in
the upside as the indicator. This is the result of his research in a data :

“Fisrt place is timing, accounted for 42% of the difference between the success and
the failure start-up companies. Second place is team/execution, accounted for 32% of the
difference between the success and the failure start-up companies. Third place is idea
“truth” outliner, accounted for 28% of the difference between the success and the failure
start-up companies. Fourth place is business model, accounted for 24% of the difference
between the success and the failure start-up companies. And the last one is funding,
accounted for 14% of the difference between the success and the failure start-up companies.”

From the data on the upside we can take a conclusion that the factor that matter the
most for start-up company to become successful is timing. That means timing is one of the
most essential thing in a start-up company that have play a role as the way of luck.
Sometimes there is a lot of start-up companies that finally ending up become success is
because they got a brilliant and magnificent idea to solve a massive problems in the right
situation and condition that also supporting the idea at that time so making the idea is the
most achieveble way to solve the problems compared to the others idea. With a great timing
and also a good situation and condition, it can bring a vision into a reality. The second factor
that has a bigger impact too in order to make a Start-Up Company successful is
team/execution. That means a successful Start-Up Comany need to have a strong and solid
powerful team in their company and also their have to build a teamwork culture base so
everybody or empolyee in the company can work very effectively base on their job
description so can impact to create a significant impact to improve the effective and efficient
works culture in the Start-Up Company. Not only the teamwork itself but also the team need
to have a strong capacities and capabilities as a professional workers in order to execute all
the task that they have to do and by that the target or the purpose that the company try to
achieve can be significantly got implement because idea is cheap bu execution is everything,
so keep that in mind. The third factor that has a big impact for Start-Up Company become
success is idea. Like a football team, idea is the one who have a role to make strategic thing
for the team to win the game, and the role of that is taken apart by a coach. In Start-Up
Company that have a culture work very innovative and creative, idea is very important to
solve a problem in the company also to create a strategic things that the company needed to
running the business so can profitable and make a progress. If the Start-Up Company don’t
have enough idea, they can stuck and can’t have a progress to make the company improve
well. That’s why idea is playing a very important part in the Start-Up Company. Fourth place
that take apart of how Start-Up Company can be success is Business Model itself. It became
very important too because business model is like the mechanism of the business itself. The
company that have a good business model can more sustain and have a bigger impact that
they can create during the time that their running the business. Business model also can
became the guideline for the company in order to achieve what is the purpose or the goals of
the Start-Up Company itself. And finally the last but not least is funding. Funding in the
company is like the resources for the business keep steady and running well. So that’s why
it’s very important to always have a sustainable fund raise for the company so the company
not collapse or bankrupt. Funding itself