How to Create a Killer Startup Company

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Startups Authors: Harry Trott, Kevin Benedict, Dan Blacharski, Liz McMillan, Rolando Kahn

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Traits of a Successful Startup Businesses | @CloudExpo #API #Cloud

One of the most important factors of determining the success of a business is the necessity for that business

Startup businesses are popping up at every opportunity. It seems that there are endless ideas that could become potential businesses. However, not all businesses will be successful. Here are some of the top traits of successful startup businesses.

The Business Meets a Need
One of the most important factors of determining the success of a business is the necessity for that business. Although it's unfortunate, great ideas will sometimes end up as a failed business. There must be a need for the product or service provided. Before you seek out investors, spend time analyzing the need for your idea.

Faith In the Business
In order to succeed, your whole team needs to be passionate about the product. Getting a startup business off the ground can be exhausting and disheartening, so your team needs to feel strongly enough about the product or service that they'll continue working with passion even through the hard times. It often takes several years of plugging away before the business becomes stable and profitable, and unwavering faith in the business will help to create a better foundation.

A Quality Team
Similar to passion, it's important to have a team of hard working individuals who aren't afraid to put in long, hard hours in order to get the business going. Whether they're working hard to get the product ready or they're thinking of creative ways to present to investors, a top quality team is of the utmost importance. It takes a special team of people to work at a startup company in its early years.

Communication with Customers
The age of social media makes it easier than ever to get a feel of what your customers think. A Facebook page, Twitter, Instagram, or blog are all great ways to engage your audience and promote your business. For example, there is a growing number of health conscious people who are hoping to reduce their cholesterol and reliance on animal products. Hampton Creek developed eggless mayo, and their Facebook page shares Hampton Creek recipes to help people incorporate the healthier alternative to traditional mayo.

Be Open to Criticism
As a fledgling business, your whole team needs to be able to embrace constructive criticism. Instead of being defensive (which it's easy to be!) think about the complaints that you're getting in order to improve the product. There are always areas in which to improve, and listening to criticism to fix problems will help you be on the way to a thriving business.

Value the Product
Many startup business founders have anxiety about the promotion and sales of their product or service. This can lead to giving away too much for free, leading to financial strain on the company. Sure, a little free promotion to get the word out there is fine, but it's essential to start earning money as quickly as possible. If you feel that your company has something new and exciting to offer, don't shy away from fair prices and payments. In some cases, asking for payment in advance from customers is a solid financial strategy.

Be Ready for Setbacks
There's almost nothing predictable about running a startup business. Investors can back out, the product might not go over well with customers at first, and there might be a high turnover as the team tires of long hours for little pay. Startup founders must be able to roll with the punches and be willing to think about the possibility of starting over. As you get a better feel of what customers want, your ideas might have to be flexible. Even if your business ends up being different from what you originally planned, it's better to have a stronger product.

Accept When It's Time To Sell
If you're thinking about founding a startup company, it can be tempting to hang onto that company no matter what. If you've put in time, money, and hours, the thought of selling the business might be heartbreaking. However, sometimes your company will be able to thrive in the hands of a more established company. Knowing when to sell can be one of the most valuable traits of a successful startup.

The bottom line is, it's tough to run a startup business. Although there are many innovative and exciting ideas, not everything will pan out. The necessity for the product, willingness to be flexible, and ability to engage with customers over several sources of social media are some of the top indicators of successful startups.

More Stories By Harry Trott

Harry Trott is an IT consultant from Perth, WA. He is currently working on a long term project in Bangalore, India. Harry has over 7 years of work experience on cloud and networking based projects. He is also working on a SaaS based startup which is currently in stealth mode.