Life is full of problems. Every single startup is born from an idea to solve one of those problems. To achieve the solution you need a team to develop the concept, a business model to make money out of it. Before making money you need money to pay for your costs, so you need to fundraise.
To make your startup successful, you must have five significant factors:
3. Business Model
You might assume that the idea is the most important. Unfortunately, I suppose you might be wrong. I cannot say it is not relevant, but ideas are worthless, and it can be changed during the process. A business model is the same if you are not monetising well it is easy to adjust. One great example of a pivot is YouTube; it was created to be a dating platform where people could share videos.
A good idea is a great start, but you need a competent team to develop it. Assuming you have the team, now you need money to live and keep the project alive while you are not monetising. You can still work without any funds. About 70% of the founders developed their ideas while working in a previous job.
Having a good team helps you to get more funds because VCs invests in people. With you have a great team or with a successful venture in your curriculum; I’m sure you will get money quickly. Elon Musk is one example, after his years on PayPal, he started to get many funds to develop his new ventures such as Tesla and SpaceX.
Idea, Business Model, Team and Funds you can control. Timing you cannot.
That’s the reason timing is the crucial factor to make your startup successful. Uber and Airbnb are the best examples of it. Both did not use high tech, either a disruptive business model. They both offered a new opportunity to people to make extra money during a crisis. Indeed, Airbnb’s idea was born from its founders, who needed to earn extra cash. Before the crisis, most people would think about renting a room from or to someone you don’t know. Plus, getting into a car of someone you don’t know would be hard to believe in the early 2000’s.
Good timing means finding the right need at the right time to a specific market. You don’t need to spend your time trying to reinvent the wheel. Simple solutions might be what people need, so think out of the box and be aware of the market; it will show you what to do.