In Bill Gross’s TED Talk he speaks about the hundreds of different business success and failures he has had in the past. Gross then tells us that he has identified the factors that lead to business success. He started his journey for these answers by asking himself why businesses fail. He breaks the factors down into 5 groups that contribute to business success or failure.
- Ideas – The idea of the business is important. Nobody wants to buy things that are bad ideas. The idea may not be the most important part, but a good idea does way better in the market than a bad one.
- Team – Gross found that having a solid team of dedicated workers was more important than the idea of the business itself because you need a team’s execution to be able to adapt to the potential blows from the customers. A good team will tackle problems created by customers: the true reality, and allow your business to operate smoothly.
- Business model – Gross believes the business model is of critical importance as well. The business model needs to set a clear path for your team to follow. Having a clear path to generate revenue will always help accomplish your goals.
- Funding – Gross noticed companies with massive amounts of funding generally do a lot better. He also realized some companies get solid amounts of funding and still fail because they lacked the most important factor: timing.
- Timing – Timing is tricky. It can be the difference between business success and failure. You don’t want to have the idea too early and spend all your time explaining it, but at the same time, you don’t want to release the idea too late and miss the market. Timing is the most important according to Gross because businesses that hit the market at the right time have huge success. His example is Uber. Uber launched during a recession when people needed extra money. Because of this need for extra money, Uber was able to quickly hire drivers from all over the country.
Gross says “Execution matters a lot,” meaning the business model, “but the timing is the most important.” Gross believes if you have the first four factors down, then you should turn the focus on the timing of your business or product.
He ranks out the order of the factors on how important they are to business success, with timing, then team, then business model, and least important: funding. The reason for this, according to Gross, is that a sound idea can get funding relatively easy. If you follow these insights, your startup business will see more success and bring something new to the world that wouldn’t be here otherwise.