What is the major reason startups succeed? Is it the idea? Most people believe that just having a good idea, like Uber or Airbnb, is all you need to succeed. Perhaps it’s funding, a good team, or business model? Sorry, guess again.
In this video, serial entrepreneur Bill Gross and founder of Idealab, sought to find out the biggest reason why startups succeed. Gross took a look at 200 companies to see what factors accounted the most for success and failure across all of the companies.
The answer surprised us and even Gross himself. It turns out that the timing of when you launch your startup is the most important. Timing accounts for 42% of the difference between success and failure.
As entrepreneurs, we need to be honest about out chances of success. You always hear how important it is to have a great team, good business model, and funding. But why do we not hear about the importance of timing the market correctly? Perhaps it is because timing is something we can not control.
Take a look at this video courtesy of TED to see the fascinating presentation from Bill Gross.