Saturday, May 29, 2010

3 requirements for a startup success

Watch this video on venturebeat about the three necessities for a startup success. Especially a tech startup.

http://entrepreneur.venturebeat.com/2010/05/28/three-necessities-for-start-up-success/

A small abstract:

- Is there a new market ? Or is there a potentially new market that can be created because of some technological or economic change.

- Essentially, new companies need not exist or need not be created. When starting a new company think about why you think its needed. What is wrong with the current companies that are doing the same or similar things that you need a new one. Because if a market exists then customers are more than happy to continue with same old companies and would unlikely switch.

- So if there is going to be a change, which you foresee, might be because of some technological advancement or economic change or both, how big is the change. Will it create a new market. Will it bring about a 10X change ?

- Think about 10x factor - always think about how fast, how better, how different your product will be than the existing one. Will it be 10x ? A VC might not be interested if its not around 10X.

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