Creating a Successful Startup: Key Factors and Future Niches

Entrepreneurship, self-employment, technology, startup. The path drawn by these words is the golden dream of many young people in our country. And increasingly, of those who are not so young. Starting a company based on an innovative idea, grounded in new technologies or the digital world, and making it profitable in a reasonably short period of time is difficult, but not impossible. Do you want to know what the key factors are to create a successful startup and the niches with the most future?

Requirements to Create a Startup

First of all, it is essential to be clear that creating a startup means setting up a venture capital company. From there, one must assume from minute one the possibility that our adventure may not work. Many have tried several times until they find the right key, and many are those who chain failure after failure without achieving the expected results. As a good entrepreneur, you must get up as many times as necessary.

While, as in everything in life, no one has the magic formula that guarantees success, there are certain requirements without which it is not viable to develop one of these emerging companies:

• The idea. Without it, there is nothing to do, obviously. It must be original, innovative, and provide a technological solution to a problem or need of users.
• The team. Clearly define the human infrastructure that will be responsible for developing the idea, as well as their training.
• The business model. Define how we plan to monetize and make our idea profitable.
• The financing. Where we will obtain the financial resources that allow us to start the project. Typically, it comes from the capital of partners, friends, family; and especially from investment funds or business patrons.
• The timing. Getting it right on when is the ideal time to launch our proposal to the market.

The Element That Makes the Difference

A harmonious combination of all these requirements, theory says, would result in creating a startup with solid foundations and good future prospects.

However, the importance of each of the points mentioned is very subjective and will depend greatly on each case.

Nevertheless, a leading authority in the field like Bill Gross, founder of the business incubator Idealab, creator of numerous successful startups, pointed out in one of the famous TED talks that timing is the most important variable of all.

This expert, who conducted a thorough analysis of about two hundred projects that passed through his hands, bases his statement on the popular saying that "the early bird gets the worm" or that "the important thing is to be in the right place at the right time."

It is clear that if there is no demand or you do not know how to generate it for your product or service, you have little or nothing to do.

Do you think launching a social network with the same concept as Facebook or Twitter right now is a good idea? On the other hand, do you think the economic crisis played a role in the success of collaborative economy initiatives like Couchsurfing, Bla Bla Car, Uber, or Airbnb?

Future Niches for Startups

Once again, taking something for granted in the business world would be audacious. However, it is not unreasonable to look around us and point to where the trends are heading within the technology field, an essential ingredient for any startup.

With that in mind, there are at least three major fields where we will see companies emerging in the coming years that are destined to become major references: Big Data (which we will dedicate an article to in this blog soon), virtual reality, and artificial intelligence:

1. Big Data is a concept as broad as it is difficult to summarize. To get an idea, just think of the immense amount of information generated today through new technologies and the need for companies to analyze all that data flow to benefit from it. Companies that provide value and solutions in this field have a high chance of succeeding in the coming years.
2. Virtual reality has been hesitating for decades, without fully entering our lives. Until the entertainment world, especially the universe of video games, became its perfect Trojan horse. Nowadays, augmented reality, beyond its recreational use, is being implemented in numerous businesses. It is undoubtedly a novel tool with vast future possibilities. Holographic communication systems, which we have seen in countless science fiction movies, are just around the corner and will soon be as commonplace as smartphones. Mark my words.
3. Artificial intelligence and the so-called Internet of Things are other fertile grounds for success. Tech giants like Google, Amazon, or Microsoft are already in full race with the market launch of the first devices that aim to turn our homes into interactive smart systems. It won't be long before Apple joins with its Siri. Google Home, Amazon Echo, and the announced Microsoft Cortana are competing to popularize virtual assistants in homes around the world. From there, the imagination is the limit, as not everything is written nor is it the exclusive domain of the big players.

Adaptability, the Key to Survival

In such a globalized world, competition is fierce in almost any field we operate in. That is why, whatever your idea or project, you must be prepared to change on the fly. As many times as necessary. As boxer Mike Tyson once said, "Everyone has a plan until they get punched in the face."

If you don't have chameleon skin, others will overtake you or leave you behind. Holding on to your convictions is fine, but questioning them if you see reasonable doubts about their viability should be part of your work philosophy. Seek your competitive advantage and optimize it, make it count to differentiate yourself from the rest and stand out. That is the key to survival. Pure labor Darwinism, my friend.

Have you tried to create a startup or are you thinking of doing so? What do you think are the most determining factors for success?