Product, Market, Team - the Secret Sauce of Unstoppable Startups

Starting a successful startup is a daunting task, and many entrepreneurs struggle to find the right formula for success. While there are many factors that contribute to a startup's success, three key elements stand out: the product, the market, and the team. In this article, we will explore unconventional ideas on how to succeed as a startup by focusing on these critical components.

The Product

The degree to which you are successful is directly proportional to your ability to build a product so good that people tell their friends about it. Many startups get bogged down in the details and lose sight of what truly makes a startup great. However, if there is one piece of advice we could give them, it would be to focus on the product and make it irresistible. This is harder than it seems, and most founders believe that the secret of running a successful startup lies elsewhere for this very reason — it’s hard. However, if you are able to build a product that people tell their friends about, that's 80% of the work done. Think about how you heard about Facebook or Google — wasn’t it a friend or relative who told you that you should sign up on Facebook or search for something on Google?

Another crucial aspect of building a successful product is to make sure it is simple to explain and super easy to understand. If you can't explain in a few words what the product is and if some people (at least) don't say “Oh, that's pretty interesting” then you can easily assume that your product won’t catch on and capture people’s imagination. From a founder’s perspective, this is usually a sign of unclear thinking or a need that is not big enough to be worth the time, effort, and money.

The Market

Another critical factor in a startup's success is the market. Startups need to identify a market that is either starting to, or is soon to undergo exponential growth. This is quite possibly one of the biggest mistakes investors make when evaluating startups. We have noticed that investors always tend to ask about growth rate and are likely to forgive small revenue figures today if the startup is growing quickly. The mistake here is choosing to ignore that the most important startups are the ones that start in small markets and are growing very very quickly. Think about how, almost a decade ago the market for iPhone apps was zero but today it has exploded into a multibillion-dollar industry. The key here is to consider different markets and how much potential and likelihood that market has to grow rapidly.

Another important thing is figuring out how to differentiate between real trends and fake trends. In simple words, a real trend is something that shows actual potential to happen, while a fake trend doesn’t seem likely to take place anytime soon. So before you make a big bet on a new startup, you want to make sure it is real.

Let’s share an easy trick on how to spot a promising trend. Real trends are the ones where a new technology platform comes along and the early adopters use it obsessively and tell others how much they love it. A fake trend is one where people may buy the product but don't use it or at least not enough. What you need to look for is how much aggressive usage is taking place per user at an early stage. And the more the early adopters use it, the more likely they are to tell their friends and family about it.

The People

For your startup to succeed, you need a CEO or a founder to be madly passionate about the product and the new grounds it is breaking. This includes selling the infectious idea to the press, to stakeholders, to potential investors, and employees.

It might sound paradoxical, but at times starting a hard startup is easier than starting an easy startup, and that’s usually because the easy ones have low barriers of entry and the market is already crowded. It also becomes hard to sell this idea to potential employees of working on an easy startup vs a tough one which is out to solve tough problems and fill a huge gap in the market.

Along with picking the right product and market, it's hugely important to attract and retain highly talented and skillful people who are committed to working hard and communicating well. It's surprising how few startups focus on building the right team and thereby fail.

Conclusion

In conclusion, building a successful startup requires a combination of a great product, a growing market, and the right team. By focusing on these three components, entrepreneurs can increase their chances of success. Remember, building a product that people tell their friends about is key, identifying a market that is stated for exponential growth is essential, and having the right team in place is vital. By following these unconventional ideas, startups can set themselves up for long-term success.

Learn more about Mind Cloud Tribe’s Entrepreneurial Tutorials and Courses