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Five Fundamental Characteristics of Successful Startups

What are the basic characteristics of successful startups? Why do some startups grow into successful businesses while others fizzle out before hitting those first goals? Every entrepreneur wonders at some point or another at the beginning of their business venture if their startup has what it takes to “make” it.

Of course, no one can absolutely guarantee that your startup will succeed (or fail, for that matter). Unforeseeable circumstances, from natural disasters to flaws in the economy, sometimes doom a startup to failure, even if everything else in place.

However, in spite of events that entrepreneurs cannot control, there are some fundamental characteristics that are common to successful startups. Make sure your startup includes the elements discussed below, work hard, and believe in your business more than anyone else and you may just find your company listed in Inc.com’s next publication of successful start-up companies.

Five Fundamental Characteristics of Successful Startups

  • An Innovative Product

An article from PrintPlace.com points out that 90% of new products fail, mostly due to a lack of innovation. Many have the misconception, too, that innovation means inventing a new product completely from scratch.

However, innovation can come from simply finding a problem and creating a solution using parts that are readily available. If you are seeking venture capitalists to help you get your startup off the ground, big and bold ideas are the ones that capture their attention. Innovation often requires risk, but one that you and other founders are willing to take because the idea itself is able to go big at some point in the future.

  • Customer Knowledge

Know your customers and what they want. Don’t try to sell them something they don’t need or want. If your startup began by selling vintage decor to customers and are trying to find a way to expand, do not try selling your customers modern decor…that is, unless your customers would go wild over it. Rather than trying to grow your product by going outside of the desires of your current target customers, however, grow your startup to fit within the expectations of your current customers. This gives you a focused vision and better enables you to create a strong experience for your customers.

  • Flexibility

Some startups grow from small to a multi-million dollar company without making anything more than some necessary adjustments in order to scale the product. Others are only successful after they completely change their business idea or innovation. And then others fall somewhere in the middle.

No matter the level of changes your startup may need to make, being flexible is a must for success. Your base customers may have loved your original idea, but the majority of consumers don’t bite: change is needed in order to gain new customers. Or maybe you realize that your original product is not scalable: make the necessary adjustments so that your startup can grow.

Flexibility means the willingness to know that some of your hard work will seem pointless because of a sudden change in direction, but that ability to make the change when needed is what will keep your startup going.

  • Strategy and Execution

Fred P. Burke, a highly successful entrepreneur who grew a Guardian Pharmacy to over $250 million in revenue, believes that it takes the right mixture of strategy and execution to make a startup work. An active plan for the future, one that encompasses growth and important goals, is vital to a company surviving its beginning. However, knowing how to carry out that strategy is also key to longevity. This is where being able to motivate and effectively communicate to your team comes into play.

  • A Killer Team

A startup doesn’t just need a team who has the knowledge base to get stuff done. It needs people who actively get involved in making sure the startup is a success. People who are hard-workers, who take initiative, and who take on your vision and make it their own are people who will help you carry the many burdens that come with starting a new company or launching a new product.

But you also have to be able to choose the right team during every stage of the process. What may have been right for your startup in the beginning may not be right for it now as you start seeing some growth. For instance, now it may be time to hire a new manager who has experience with larger scale operations.

In conclusion, i want you to understand the fact that not all startups follow the same patterns on their road to success, but the majority of them do seem to have some common characteristics. Most successful companies were a result of hard work and determination, not an overnight fluke or flight. Keep researching, trying, trying, and trying again, and your startup will be much more likely to become your ticket to rewarding self-employment.

About the Author: Tara Hornor has a degree in English and has found her niche writing about marketing, advertising, branding, web and graphic design, and desktop publishing. She writes for PrintPlace.com, an online printing company that offers business cards, catalog printing, flyers, brochures, postcards, poster printing, and more printed marketing media. In addition to her writing career, Tara also enjoys spending time with her husband and two children. Connect with @TaraHornor on Twitter.

12 Characteristics of Successful Business Management Teams

What are the success secrets of the world’s most successful business teams? What characteristics or traits do they possess that other business management teams don’t? What characteristics must I be on the look out for when building a business team? If any of these questions ignites your interest, then please read on as I explain in detail the characteristics that make a great business management team.

I have listened to series of successful entrepreneurs and drop out billionaires being interviewed but despite their different lines of business, strategies employed and marketing terrain; they all seem to have a common business success secret. And that business success secret is their “Business management team.”

Now if the richest people in the world such as Bill Gates, Ingvar Kamprad, Mukesh Ambani, Steve Jobs, Larry Ellison, Li Ka Shing and Aliko Dangote; the richest black man in the world all credit their success to their business team, then there must be something significant about having a business team.

The sustained growth of companies such as Oracle, Apple, Dangote Group, Berkshire Hathaway, Reliance Group, Arcelor Mittal and General Electric is primarily hinged on the expertise of the business management teams behind these companies.

Now instead of telling you the importance of having your own business management team or how to build a business team (which I have explained in details in previous articles), I will be using this medium to highlight the specific characteristics possessed by the successful business teams all around the world. So if you are ready to learn, then sit back and read on.

  12 Characteristics of Successful Business Management Teams

1.            Definiteness of Purpose

Definiteness of purpose is one of the success secrets of the world’s most successful business management teams. Successful business management teams know the company’s goals, objectives and vision at their finger tips; and they are focused in the pursuit of the company’s objectives. They know their specific role in the company and they concentrate on this role to make sure that the business objectives are met.

2.            Knowledge of the Business

Successful business teams have adequate knowledge of the business of the company. The general rules of business are the same throughout the world but market intricacies are different from industry to industry; so also are the environmental factors. That’s why I said that successful business management teams have adequate knowledge of the business.

A competent corporate manager in the food industry may not perform excellently when assigned to a business operating in the oil and gas sector. Why? The reason is because the industrial intricacies and the market are entirely different. Take a look at what happened to Apple when John Sculley took over leadership; Apple lost market share and profits declined rapidly.

What really happen? I can’t really tell; after all, John Sculley was successful during his time at Pepsi. But all the same, I can attribute his failure to sustain Apple’s market share to lack of understanding of the business and market intricacies associated with the technology sector.

John Sculley was experienced in the food and beverage industry; however, he wasn’t able to transfer that experience to the technology industry because the rules of the game are different. So if you are going to build a successful business management team; be sure to make “knowledge of the business” a top priority for the members of your team.

3.            Commitment

Take a closer look at the characteristics that make up successful teams and you will see commitment at the core. Successful business management teams are committed to the success of the company in which they serve. You may not really understand how commitment affects the performance of a team until you study the management structure of companies such as Berkshire Hathaway and Google.

4.            They are Goal and Result Oriented

Successful business teams are result oriented. They know that their competence and credibility will be adjudged based on their accomplishment; so they press forward for positive results because results keep them in the game. If they fail to produce results; they will get kicked out of the company by the business owner or investors.

5.            They are Individual Thinkers and Critical Problem Solvers

Members of a successful business management team are individual thinkers and critical problem solvers. Though they are a team, the members still think individually and solve intricate problems associated with their own area of expertise. For instance, the Chief Operational Officer individually tackles problems associated with the firm’s daily operations while the Chief Financial Officer strives to keep to keep the company’s finance in good position; yet they are all working towards a common goal, “Sustained Business Growth.”

6.            They are Team Players

Successful business teams are team players. Though members of the team are individual thinkers; they all act with same definiteness of purpose towards actualizing a common goal.

12 Characteristics of Successful Business Management Teams

7.            They are bonded by the Business Mission Statement

At the core of every successful business management team is something very important. This single factor is the reason why successful business teams are successful and this factor is the “business mission.” Successful business management teams know that the entrepreneur’s spirit is in the business mission and that’s why they strive to stay focused on the business mission. It’s this same mission that keeps them together as a team; take the mission away and the centre will not hold any longer for the entire business.

8.        They are Strategic in their Approach

Successful business management teams are strategic in their approach. All members of the team are individual master strategists with respect to their own field or calling. Successful teams strategize, plan and make in-depth calculation or analysis before arriving at a decision. And once a decision is reached; they execute it without delay and monitor the feedback.

9.            They are Competitive

Just as soldiers are tested on the battle field; so also is the competence of a business management team tested in the marketplace. Competitiveness is the reason why successful business management teams emerge successful; they are always on the watch to swiftly counter the moves of competitors. Price wars and media attacks are product of business teams testing their wits against each other.

10.          They are Responsible and Accountable

Successful business management teams are responsible and accountable for their actions. They know that the company’s success or failure is dependent on the decisions they make; so they take charge and execute their plans without fear of the consequences. If their move backfires; they take responsibility, learn from the mistake and move on.

11.          They are Opportunistic

Successful business management teams are opportunistic in their approach and strategy. They are always on the lookout for trends, problems and opportunities they can exploit. They are always quick to take advantage of a miscalculation or false move from the competitor.

12.          They are Excellent Communicators

And lastly, successful business teams are excellent communicators. They know how to motivate their workforce, raise capital from investors, promote the company’s products and increase brand loyalty through their spoken words.

As a final note, these are the 12 characteristics and success secrets of the world’s most successful business management teams.

So if building a business management team that will serve in high capacity and keep your business metrics strong is your topmost priority; then make the characteristics listed above a priority while forging the values on which your team will be built and your business will end up having a strong management team.

7 Successful Business Strategy Models You Must Emulate

Today, I want to reveal to you seven businesses I am modeling. As you know, I am in the entrepreneurial process of building a business so I have to follow the footsteps of the great business leaders. Just as I have business mentors and entrepreneurial role models, I also have business models that I strategically follow.

In this article, I will be revealing seven companies I use as a standard to build my own business; I will also be telling you the strengths of these companies. I love and model my business after these companies not because of their great products but because of their strategic management style. They are successful companies and they make good business models for younger companies.

I will be specifically explaining the specific business strategy used by each of these successful business models. You are also free to adopt any of these strategies for your business. If you are ready, let’s set the ball rolling. Below are seven successful business strategy models you must emulate.

  7 Successful Business Strategy Models You Must Emulate

1.     Apple Inc -  Good Innovation Strategy

“Innovation distinguishes between a leader and a follower.” – Steve Jobs

I listed Apple Inc because of the innovative style of their management. Apple has kept the pace by using strategic innovation to maintain leadership position in the technology industry. Apple’s innovative strategy is simply breathe taking.

You can never predict what they’ve got up their sleeves. They are always coming out every now and then with one innovative product or the other. They’ve caused several frenzies in the marketplace with products such as iMac, GMac, IPod and IPad.

“To turn really interesting ideas and fledging ideas into a company that can continue to innovate for years, it requires a lot of disciplines.” – Steve Jobs

“In three years, every product my company makes will be obsolete. The only question is whether we will make them obsolete or somebody else will.” – Bill Gates

Apple’s innovative style has made them consistently rank top ten in the Fast Company’s list of innovative companies. I try to model Apple in my own little way by constantly improving on businesses. I constantly seek innovative ways to increase customer’s loyalty and profit. If you want to make innovation one of your company’s core values, then Apple is one of the successful business strategy models you can emulate.

“Pretty much, Apple and Dell are the only ones in this industry making money. They make it by being Wal-Mart, we make it by innovation.” – Steve Jobs

2.   Virgin Group – Strong Competitive Strategy

“A business has to be involving, it has to be fun and it has to exercise your creative instincts.” – Richard Branson

I respect Richard Branson’s Virgin Group for their guts. They are always unafraid to tackle giant companies head on. The Virgin group is respected in the business world for their strong Competitive spirit; they are quite good at outsmarting the giant companies.

Virgin’s competitive style of management has made them go head to head with giant corporations such as British Airways, AOL and Coca Cola. If you have the entrepreneurial spirit of competition, then Virgin is the company to model your business after.

“We have always had a pretty competitive ferocious battle with British Airways. It lasted about 14 years and we are very pleased to have survived it.” – Richard Branson

“What does the name Virgin mean? We are a company that likes to take on the giants. In too many businesses, these giants have had things their own way. We are going to have fun competing with them.” – Richard Branson

3.    Oracle Corporation: Tactical Acquisition Strategy

“Everyone thought the acquisition strategy was extremely risky because no one had ever done it successfully. In other words, it was innovative.” – Larry Ellison

What really made me doff my hat for Larry Ellison, founder of Oracle Corporation was his aggressive acquisition strategy. What will you say of a company that spent over $65billion to buy up 57 companies in a space of five years?

The company was molded by the founder “Larry Ellison” to expand via strategic acquisition and this strong acquisition strategy made them beat IBM to the game by acquiring Sun Microsystems. If mopping up smaller companies delights you, then Oracle acquisition strategy is a business model to study.

“In order to grow at this pace, there’ll have to be a couple of acquisitions along the way. The tricky thing is to grow at this rate and maintain a 40 percent operating margin.” – Larry Ellison

“I think you might see us growing much deeper into banking. You might see us acquiring companies in the banking area. You might see us acquiring companies in the retail area. I think you might see us acquiring companies in the telecommunications. I think you will see us getting stronger in business intelligence.” – Larry Ellison

4.  Dangote Group – Niche Domination Strategy

One of the successful business strategy models you must be on the watch out for is that of the Dangote Group. This group is so strong in the Nigerian commodities market that they have held the market to ransom for years.

The Dangote Group has a thorough understanding of the commodity market. Their strategy to focus and dominate this niche has put them in control of over 42% of Nigeria’s commodity market; a country that boast of a population with well over 150 million people.

Dangote Group now maintains a stronghold on the Cement, Flour, Pasta, Salt and Sugar market. Thanks to the vision of its founder, Aliko Dangote; the richest black man in the world. One lesson I picked up from the Dangote Business strategy model is this; forget about satisfying everyone, just pick a niche, master the ins and outs and strive to be the best in that niche.

 “The ultimate goal of the Dangote Group is to dominate every niche in which it operates. In order to achieve this goal; we acquired over 3000 new trucks, developed a strong distribution network and increased production capacity. Our strategy is to sell our products faster than our competitors and at uniform price.” – Aliko Dangote

“And here is the prime condition of success, the great secret. Concentrate your energy, thoughts and capital exclusively upon the business in which you are engaged in. Having begun in one line, resolve to fight it out on that line; to lead in it. Adopt every improvement, have the best machinery and know the most about it.” – Andrew Carnegie

5.    Reliance Group – Thinking big strategy

Do you know one thing I love about Mukesh Ambani’s lead Reliance Group; they think big and do things big. They own the largest refinery in the world and they are one of the largest conglomerates in the world; but they were not as big as this many years ago.

To further proof their belief in doing things big, Reliance Group invested $5billion in a single swoop to create a network of retail stores. The ultimate lesson from this successful business model is this; start small but think big.

“I like thinking big. If you’re going to be thinking anything, you might as well think big.” – Donald Trump

6.   Wal-Mart: Unique Pricing Strategy

“Always low price.” – Wal-Mart slogan

Wal-Mart, in the face of stiff competition came up with a winning strategy that made them industry leaders. They decided to use strategic pricing as a weapon to overcome their competitors and that pricing strategy has put them in the leadership position.

Today, as at the time of this writing; Wal-Mart is the most capitalized company in the world and number one on the list of Fortune’s 500 companies.

“There is one rule for the industrialist and that is: make the best quality goods possible at the lowest price possible, paying the highest wage possible.” – Henry Ford

7.    Coca Cola: Strong Brand Strategy

“If you are not a brand, you are a commodity.” – Robert Kiyosaki

The seventh successful business strategy model we will be looking at is Coca Cola; owners of the world strongest brand. Sometime ago, Coca Cola’s fixed assets were estimated at $8billion but its brand name “Coca Cola” was estimated to be worth over $80billion. Why? The reason is because Coca Cola has worked diligently over the years to strengthen their brand.

The Coca Cola brand is the most popular all over the world; thanks to the strategic brand management team of the company. If using your brand image to gain an edge over competitors looks like something you can diligently pursue, then Coca Cola’s business strategy model is definitely worth emulating.

These are the seven successful business strategy models you can use as a benchmark to model your business. I want to state categorically that it’s useless trying to implement all these strategies. Just pick one or two and diligently give it your best shot; and success will be yours