Everything You Wanted to Know About Tech Startups but Were Too Busy (Building One) to Ask [INFOGRAPHIC]
Do you have any burning questions about startup life, only you’ve been too busy starting up your own company to ask? Say no more: below you’ll find everything you’ve ever wanted to know about tech startups, from the dreams and strategies of effective startups to the fears holding founders back, in one handy infographic.
Why Do People Start Companies?
In Silicon Valley, 43% of startups are excited about building a great product, and 38% aim to change the world. 14% name making a good living their reason for starting a business and 5% are looking for a quick flip.
Why Do Some Startups Succeed?
While there is no guaranteed way of finding success, certain strategies seem to help startups more than others. Startups that measure metrics, for example, are 61% more likely to raise money. Startups that follow startup thought leaders are 80% more likely to raise money. And two-person startups pivot twice as much as startups run by a solo founder and take a third of the time to reach scale stage.
How Startups Plan to Monetize
Choosing a conducive business model is a decision that can make or break a startup. Maybe this is why a whopping 43% of startups plan to monetize through a subscription model. Additionally, 17% of startups focus on earning their keep from transaction fees, 8% through ads.
Why Some Entrepreneurs Are Scared to Start
Many factors hold potential founders back from starting their own business. In the U.S. 30% of entrepreneurs are afraid of going bankrupt. In Spain, 60% fear losing their home. And in India, 40% fear irregular income.
Why Founders Quit
Despite high goals and good intentions, sometimes closing your business is the best or only option. Of every 10 new businesses created in the U.S, three close because they aren’t profitable, two because they had problems getting financed and two because of personal reasons.
The Four Personalities Every Startup Needs
Startup teams work best when each member keeps an eye out for different ways to make the company run smoothly. The automizer, for example, is product centric and highly concerned with fast execution and automatizing manual processes. The social transformer is obsessed with achieving runaway user growth, solid UX design and creating new ways for people to interact. The integrator focuses on SME concerns, smaller markets, and early monetization. Finally, the challenger aims for enterprise sales, high customer dependency and a repeatable sales process.