This infographic shares the most influential factors for success in a startup. Do you have what it takes?
The world of entrepreneurship, business and startup has never been better.
Never before have we lived in a time where anyone can start a business from anywhere and instantly get millions of dollars in funding thrown at them like it was nothing.
While it may seem as simple as that, it really isn't.
For every startup or business success story you hear, there are thousands of other stories that get lost in the dark and never see the light of day.
It may be easy to start a business today, but it's not so easy to find long-term success or even get funding for your next big idea.
In this article and the “Factors that Influence Startup Success” infographic featured below from Designhill.com, we are going to take a look at what it takes to find success when launching a startup of your own. The takeaway is that there are plenty of key factors that come into play when determining the overall success of your startup, especially when it comes time to ask for investor money!
Related Article: 5 of Your Biggest Startup Problems Solved
Key Factors that Influence Startup Success
To kick things off, let's first look at what the current entrepreneur and business owners landscape looks like right now. As mentioned, it's very easy for anyone to get started with a business of their own these days. In short, all it takes is an idea and access to the internet -- then boom, you have a business!
Current reports show that an estimated 530,000 new business owners make their way into the industry each and every month. This is an additional six million plus per year. While you might think right away that there is way too much saturation for these types of numbers, it's important also to realize that most first-time business owners won't find success, nor stand the test of time.
For this reason and more, startups are now the latest buzz in business! However, just like in the retail and brick and mortar business world, you still need to have a real business model and make money to find success. Startup founders can create their business with what resources they have, and then take their idea and concept to investors to see if they have what it takes to get funding and bring their business to that next level.
Not every startup is bound for success. In actuality, getting money from an investor is no easy feat, but when you know what states are the most investor friendly, what investors are looking for and how to build a powerful team around your organization -- then you are much more likely to find startup success.
To help you with this process, let's take a look at some of the key factors outlined from the infographic below.
Age of Startup Founders and Entrepreneurs
- Startup founder teams have an average age of 35 to 54 years old.
- Prior work experience isn't a requirement for startups, but most founders (39 percent) were previously a CEO or Founder of another company.
- 28 percent of founders have a mixed background of job titles spanning across upper management, director or manager positions.
- Education is of little importance in the world of startups, are more than 60 percent of founders have little to no college experience. While education may not be important to investors, here are a few reasons why getting your MBA is still a huge benefit.
Best States for Startup Success
Austin, Miami, San Jose, Los Angeles, and Denver have quickly become the hot spots around the country for startup success. This is usually due in part to their industry surroundings, internet/tech growth in these areas and also "hip and cool" locations for younger entrepreneurs to live.
Also, check out these top states for starting a business in general.
Funding and Startup Investors
- The amount of money going towards startups continues to increase year after year
- In the second quarter of 2015, $17.10 billion was invested in startups. This number is expected to pass $18 billion by the end of Q3.
- By the end of 2015, over $32 billion will be invested in startups across the country.
- California continues to reign supreme as the best location to launch a startup, as it's investments account for 18.2 percent of all startup spending.
There is no slowdown in sight for investing in startups, it's time to put your best foot forward and utilizing this research and information to help your startup stand out from the crowd. If you haven't already, move to one of these hot startup locations, get your deck ready and be prepared to change the world!
Related Article: Let's Get Real: Startup "Truths" Re-Examined