5. Raise Enough Money the First Time
As most startups know, determining how much money to raise is difficult. Raising enough money in your seed round will carry your business through inevitable growing pains and redesigns, but it’s important to retain enough money to develop the final product your users will love. You don’t want to spend all your time convincing investors to sign that next check that will keep the company afloat.
6. Don’t Waste Money
As obvious as this one sounds, startups waste money every day. They often overspend on things that can wait until later, or on a tool that doesn’t get them the expected results.
One area in which startups waste money is hiring too many employees too fast. Early on, only hire people who add required functionality that cannot be fulfilled by current staff. Employee salaries should be carefully controlled at the beginning of a successful startup.
7. Have Multiple Co-Founders
A startup can be very time-consuming. Although you envisioned its concept, you may lack the required skills to launch your idea into reality. Therefore, divide the work among trusted partners with necessary skills sets, and be able to bounce ideas off each other freely.
You may not have all the skills to flag a business, and also not enough time in the day to wear all of the hats. If you can’t convince a co-founder to come on board and fill a role, it may be a red flag that your idea needs tweaking.
8. All Or Nothing
We’ve all heard the saying “don’t quit your day job, kid,” but in the world of startups, any time spent focused on outside tasks is an opportunity for competitors to beat you to market. You need to focus all your time on your startup if you want it to succeed. And this may mean quitting your day job.
If you’re building a product, targeting customers, and trying to attract investors all in your spare time, you don’t have your priorities lined up. If you dedicate all your time to your startup, you will have more drive to successfully get it to market, because now your livelihood depends on it.
This list doesn’t guarantee that you will succeed, but it will give you some benchmarks to compare yourself against. Can you think of any additional characteristics that successful startups have going for them? If so, leave them in the comments.