Official as of today – The winner of the Great Startup Contest is Nathaniel Elliott! Congratulations Nathaniel!
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Recently I shared a story about the startup Zaarly that went from idea to successful startup in 3 months! The startup was born out of the Los Angeles Startup Weekend in February. Many of you who read this blog are familiar with the startup weekend. We have had two in the Indianapolis area that have spawned some pretty cool companies and ideas.
The Zaarly story is brilliant because within six hours, Bo Fishback, former VP of Entrepreneurship at the Kauffman Foundation, Ian Hunter, and Eric Koester, had developed an idea for the world’s first cash marketplace. If you want to switch for better seats at a concert… name the price.
Brilliant.
My friends at Business on Main and I wanted to get a better idea of what YOU feel makes a great startup. I have been through the world of the startup and have my opinion on what you have to do to make something work but I want your opinion.
In order to facilitate the conversation, I will be giving away a $100 giftcard from Apple for the best answer. The contest ends at 12:00pm on Wednesday, August 31st. We will pick a winner on Thursday, September 1.
Here is what it will take to win.
The More Comments and Likes the Better! – If you notice on my comment section (below this post and the image) it allows you to like a comment and respond to that comment. The more responses a comment gets, the better. The more thumbs up a comments gets… the better.
This is going to be a contest. Go ahead and post a comment below on this post, get your friends to comment, and like!
Bill Wolfe
Kyle, I'm looking forward to reading some great responses.
This is the question that so many of us chase to figure out. Here are my thoughts:
1. An idea that is viable and self-sufficient. Anyone can come up with an idea, but is the idea useful and will it have longevity?
2. Money isn't the master. Many a startup has been bootstrapped. At some point funding will play a part, but don't get hung up on "needing" funding to get going.
3. What's your smack? We all know what "smack" is when we see it. The great startups have some smack in their space; they challenge the norms and do things differently than everyone else. They market better, have a simpler product that is more effective and just plain have an allure around them. This is one of the hardest parts.
And the secret sauce:
4. A team of passionate people relentlessly striving toward the common vision.
wkrpindy
filling a previously un-recognized void that a value can be applied to.
Christina Meyer
Overcome adversity and be willing to stick it through a tough, sticky, messy business! Believe in yourself, your product, your team. Believe that others will believe in it, too. Get the product out and test it as soon as possible so you can work out the kinks. Have realistic expectations. Be likable, trustworthy, and high quality.
Drew Steuer
With so many startups jumping out of the wood works all based around generally good ideas the difficulty for these companies is being noticed. There are so many startups in the Indy area alone that I would be willing to bet that 90% of the people have never heard of, therefore if you can effectively make yourself visible to the public and transmit a relevant and relatable message then you can tap into startup success.
Jenny Pratt
Vision, guts and action.
Great startups are filling a need or creating one. Their founders see the space differently and create a compelling vision for how the world we be different, better, more efficient, less costly, more creative, whatever … because of the benefits – better the experience – this company can provide.
Great startups are led by gutsy people. They challenge status quo, don't take no for an answer, find creative ways to make their visions and dreams reality. We all know overnight success is rarely overnight – it takes guts to keep working and keep trying and keep believing that you will succeed (that sounds like a Journey song).
Great startups have actually been started. Seems a little basic I'm sure … but how many people have you talked with who can talk and talk and talk (and talk) about all their great ideas or how much they don't like their job …. and then DO NOTHING???
The right people, angel investors, great marketing, a solid business plan, customers – all vitally important – but without vision, guts and action there's nothing for the people, investors, marketers and customers to do.
Phoenix R. Cavalier
Well said!
Brian Schutt
What makes a great startup, or what makes a startup that will become a great company? Since the point of the former is to become the latter, there are a few fundamentals that need to be in place.
1) Before any idea, there are people. A successful startup is only as successful as the team working on the startup. The team should have a diversity of strengths, recognize those strengths in themselves and the other team members, and most importantly trust one another to execute in those areas of strength. Startups lack the luxury of time for inefficient internal meetings to navel gaze on process.
2) This team must have clear vision for what the end goal should look like, and just as clear of a commitment to the reality that the initial vision might have to change.
3) Because a startup lacks both the time & capital to both capture every datapoint, it's critical to both track the right data, and have the decisiveness to know when the data requires the aforementioned change of strategy.
4) The final point relates heavily with the first. A successful startup requires a team committed to perseverance. It requires that you wake up every morning knowing that you'll spend a day running into walls, yet never allowing those walls to slow down the forward motion.
Ester
I answered, too, and would love to win the gift card, of course …. but voting for Brian's answer. All very good points — especially agree with having clear vision for end goal, but would add that team must also be flexible to adjust to consumer demands, changes in technology/economic climate/other factors. — Ester
(for the record, i don't know Brian)
Kristine Myers
Providing a needed, yet unfilled service that is marketed from a paradigm that differs from the usual. Example: pointing out to the prospective client how they can maximize their dollars with your service as opposed to how they usually spend.
Jason Williams
I think it's popular to envision a "start-up" as the latest and greatest thing. The amazing new online application, the trendy new electronic, etc. Companies "start-up" every day in all markets and in all business sectors. The guy that decides to open a new car-wash is still a start-up even if it's not a new or different idea. Here's a few things I think must be in place:
1. motivation and passion. If you don't believe in the product/service, it will not succeed. You have to be going out on your own for the right reasons
2. need and/or demand to sustain the new idea. A new item/service may be created to fill unmet needs, or someone simply notices there is a high demand for sushi in their town and not enough sushi joints.
3. a plan
4. capital
Andrew
A concrete vision firmly committed to by the founders
that exploits or creates a blue ocean and is run as lean and efficient
As possible until the product or service has traction with the founders constantly challenging and refusing to lie dormant with the status quo.
Phoenix R. Cavalier
Hey Kyle, I hope you're doing great!
I really like this question and have a few solid thoughts, which are:
Every startup requires three things:
1. PEOPLE: A commitment to demonstrably value people at all times; it's what I call giving a damn about others. Again, this is not rhetoric, it must be a culture that lets actions demonstrate how the company values its clients and team members. For example, Starbucks shows that it values its employees (healthcare for part-time employees), and customers (using first names, hosting open mics, or creating customer-centric contests) in many ways; I believe this is a central ingredient of its success and what allows it to remain adaptable as a result of listening to people across the board.
2. SYSTEMS: A clear and well-defined set of behaviors, this is not about a high-level mission and vision statement; these are observable behaviors that define core truths about the company, i.e., "It is true that we always send thank you cards three days after a project is completed, or a service is provided – on time like clockwork." Behaviors are what build brands and build trust through actions that are observed, vs. words that are used to sell.
3. EMOTION: A startup must be born of a fiery desire to change, reshape, or shift culture in some way. If it is solely based on a tactical approach to innovation, then it will be missing the fire that makes others fall in love with the idea, brand, or concept. Think of the Segway, while I loved it, it was only a tactical win for the science of mobility, instead of a personal win for people (back to number 1). If the gyroscopic sensors that made its mobility possible had been put to use in a revolutionary new wheelchair design, I am certain the emotional capital would have been on tap to propel its technology into every home and business across the globe. As it stands it has been relegated to the novelty and public sector to do a job that's purely functional, and virtually free of any emotional appeal. It has become an appliance instead of a the revolutionary device it could have been, precisely because it lacked an emotional connection.
These three components consistently reinforce a great idea, and allow it to grow and change with changes in culture and perceptions. All the rest; marketing, capital, strategy, data, etc. are only of value when these thee components are evident at all times.
Thanks for asking a great question Kyle, be well.
Sergio Flores
Kyle, I believe that there is no "one size fits all" answer when it comes to start-ups. It really depends on WHAT it is that the founders want to do.
But, If I had to be specific it would be…
1. What is the motivation? If its money…. they probably won't last. They must have a passion that keeps them up at night. They should be so in love with that idea that they will work as hard as it takes to make it happen. People that have that passion are the ones that succeed.
2. Their idea/product should SOLVE a PROBLEM. There has to be true meaning and purpose behind the startup.
3. As Guy Kawasaki would say. The startup has to have a product/service that is "Enchanting." That means, you have to market it that way.
It doesn't matter if you have the "best" potato chip on earth. It could have perfect moisture, density, crunchiness, etc.. If your BRAND is not enchanting, nothing else will matter.
The key to digital marketing and making your products "enchanting" is remembering to BE HUMAN.
True success in Digital Marketing is about being human. Its not everything, but its a great place to start.
Russell Allert
Simply the desire to help someone with an issue or problem.
Kenan Farrell
You need a great trademark of course!
Ester
I think most integral component for a great startup is the main person behind it. Determination, stamina, willingness to maybe sacrifice other components of your life to make it work.
Eating/living/breathing it, and becoming your brand.
Also very important, though, is having support/resources to weather the start-up phase. Willingness to invest in your business — have quality marketing materials, menus, whatever. Don't grow too fast that it sacrifices your image. Slow, controlled growth works best … unless you just happen to have a rich relative or an angel investor!
Frank Cox
Simplicity of an idea is a great start-up, yet it must be complex enough not to be mass produced (copied). Whatever it might be has to be able to have a vast target market, especially with a declining economy. The idea must challenge the status quo, and the owner must be humble, coach-able, and have an acceptance to problems. Have a vision, and be decisive because "to try" means to have the intention to fail.
Cindy
Simple concepts allow room for growth and product development.
Ryan
I agree with simplicity because too many times people focus on too many aspects of the idea. You have to be able to be very good "expert like" at one certain thing before you can attempt to be good at other things related.
Dan
Agreed. A start-up must be elastic and subject to adversity. Their failures create room for refinement and incentive to work out the rough edges. Extensive research must be conducted to assess marketing strategy and a fiscal specific business plan for the future relative to business goals to allow for controlled growth. The owner "must have the skill and the will, but the will must be stronger than the skill." MA
shahegde
Why not learn from movie titles? A great startup needs:
-The Fantastic Four (or number of founders)
– True Grit
– (to be) Obsessed
– The Social Network
– Serendipity
🙂
Bill Wolfe
very clever! good one.
Janette Toral
Have been able to visit 2 incubators lately (Pittsburgh and Alabama) and got the following ideas:
1. They must have a unique compelling solution with strong market potential. (find suitable market for the product idea)
2. Able to create a selling product with least capital.
3. Demonstrated capabilities of the start-up team. (but unafraid to outsource if needed)
David Spain
Passion, perseverance, promotion and a patent! http://www.mossandstonegardens.com/moss rocks.php
Shameless self promotion that is!
Stuart Davidson
The will to succeed. Often start-ups have good ideas and good people, but great start-ups will have a team of passionate employees that are willing to take each and every initiative to the next level. Strong communication will ensure smooth delivery of services. Internal communication to make sure everyone is on the same page and headed in the same direction as well as external communication to the client and delivery of services offered. Take your customer service to the next level by always being there for your clients. Also remember to have fun. The first couple years of a start-up will be full of stress and pressure. Take a moment and remember why you are doing what you are doing. Enjoy the beauty of working for a start-up. Learn from failures and lessons learned and apply those lessons to future road bumps and situations and you will find much success!
Ricardo Lousada
A great idea (normally the ones that solves big problems) transformed in a viable business model so that:
– Value is perceived by potential customers – VALUE CREATION
– it can attract attention and build demand – MARKETING
– Product / service is well priced, can be sold – SALES
– It's delivered the right way and assures customer satisfaction – STRONG MOTIVATED TEAM
– It's economically viable, special attention to working capital – GOOD FINANCIALS
And last but not the least…deliver value with VALUES: honesty, transparency, commitment (do what you promise) , social and environment responsibility….This is what i call a X-stainable company.
Cheers to all
@Ricardo_lousada
NTQ
totally agree
Nathaniel Elliott
You are completely right… And I think one huge thing out of this is a "strong motivated team". Without a team you can trust / a team that will work hard, there would be no execution!
PK
Location Location Location…..
I am surprised no one even mentions it. Despite all the talk about frameworks and people a good location rich in resources is what one needs for a thriving startup. There is a reason why startups pound the pavement on Sand Hill Road and not Meridian Avenue.
Ricardo Lousada
Hi PK,
you have a point there but in my opinion location is becoming less and less important these days. With the POWER of Internet and social media networks you can go global as never before. I think the real barriers to overcome are more related to language and culture, but can be mitigated with local teams (THINK GLOBAL, act LOCAL).
The world, society and consumer behavior are evolving at a speed never seen before and even the business fundamentals are quite the same as used to be some “old golden rules” need to be refreshed. Take 4P’s of marketing for instance… some experts already talk about 7 marketing dimensions.
I’m working on a business plan to launch a startup from Portugal (10M population) and I’m aiming to make it global, it’s a long journey but as LAO-TZU says a Journey of a thousand miles starts with a single step.
Just a though…Mental models tend to limit us more than reality, look at the example of Skype…sold to ebay for 2.2 $Bn…this was started by two Scandinavian guys alone…
For me it’s time to think “yes I can”…just saying 🙂
Cheers.
PK
Thanks for your response Ricardo. There will always be counter examples like a Skype. It is a long journey but one can significantly reduce the time (mind you I am not talking about distance here) by being where all the key players already congregate. There is a reason why Facebook moved from Boston to Silicon Valley and countless other start-ups continue to do so. You may eventually realize the same and buy that one way ticket to the Bay Area.
Regards
Ricardo Lousada
I see your point and agree that it can indeed reduce the time 🙂
Cheers.
Ivar Arulaid
Good story,
Carefully chosen, highly motivated team,
NOT the lowest possible price,
Solved IP questions, patent(s) pending (if the product needs protection)
and most important – solid MARKET FEEDBACK
wkrpindy
A high tolerance for Scotch?
Nathaniel Elliott
Simply put, it is what my own tag line says…
Creatively – Executing – Ideas
// A startup needs creativity but more then that it needs to execute the ideas that come from internally and externally. If you don't have one of those things, you wont have a startup worth going after. The key component is that it doesn't take money, it doesn't take ideas, it doesn't take creativity, but instead it takes the combination of all three.
@SimpleNE
aditya
Great point…
Ricardo Lousada
Good point 🙂
Josh
A great point but the fact is the center ‘execution’ is the hardest and biggest part to the success of any company. Facebook was a good idea but he executed it. Key component.
Nathaniel Elliott
@Josh – I completely agree but if you don't surround yourself with Creativity / Ideas you don't have anything to execute. If Mark from Facebook hadn't had an idea, he wouldn't have had anything to go after! His idea was brilliant and creative.
Nathaniel Elliott
@Aditya / @Ricardo – Thanks for the comments but what do you think makes it a good point? I am in the process of actually writing this out now into a full blog for myself and curious! Thanks.
Ricardo Lousada
Hi, yes i really think you scored with the comment….each of those elements is essential for success, one without the others is useless.
Cheers.
Terry R.
Simple as "creatively executing ideas" – I think it takes a lot more then just those three things. I see where you are coming from but it isn't always that simple. It takes scotch and a whole lot of guts.
Thomas Davis
The discussion, and competition is about “what makes a GREAT start up”. I’ve seen a lot of comments in this thread that include the needed parts of a start up, but nothing that so simply and clearly defines the components of a great startup. I believe that Nathaniel has hit the nail on the head. Establishing the basic elements that cause a startup to get off the ground and continue to succeed in the long term.
Creativity allows for flexibility , inspiration, life, and long term motivation. Ideas are born from creativity and are worth nothing until executed in a creative and thoughtful way. Execution moves the company forward, and allows your ideas to reach the world!
Nathaniel Elliott
@Terry – Scotch / Guts / and Dedication can all fit under those titles. I know it isn't a 'save all' theory but in some ways you can compel it to be that way. A lot of the 'broad' things you need to successfully pull off a startup are found in these three steps.
@Ricardo – Gracious on the follow up, seriously!
@Thomas – Thanks for your thoughts on this. "Execution moves the company forward, and allows your ideas to reach the world!" Make it a key component of starting and ending well. That is for sure!
minamedia
excellent point. a startup needs a culmination of things that combine to create a viable brand representative of what the business represents, backed by the funds to see it through.
Paul
Great thought and worth pursuing!!!!
jbledsoejr
CONGRATS Nathaniel!
Ricardo Lousada
Congratutalions Nathaniel 🙂 If you don't mind one of theses days i will mention you in my blog.
If you want you can contact me @ ricardo.lousada@gmail.com i have a concept arround business that you might want to refer in your blog.
Cheers.
Jenee Michelle
I learned how to be an entrepreneur through my father…. and mark my words, entrepreneurship is something I thought I'd never be able to immolate as successfully as he did! Even today…. while he struggles with Parkinson's Disease….. he still manages to be creative and turn his everyday passions into mini money making ideas!
Passion…. we've heard that before, but passion is nothing alone unless it's the passion that scares you the most. I have many passions, but I didn't realize, until only months ago, that I was putting the least amount of energy into my most profound passion. When I switched that balance (scary to say the least) the flood gates opened!
Fear…. Yes, to have success you have to know fear at it's core. Fear is what will make you work an extra hour when you are falling over exhausted. Fear will teach you how to solve problems faster…. take more risks and and hold nothing back…… possibly because you have nothing to lose! I started my last business with a blackberry and a borrowed laptop and unemployment dollars. Yeah…. scary!
If the prime goal of a start up is to make money….. it has a good chance at failing. If money is the result of someone executing their passion…. then financial gains will surely come.
I know I'm exercising my passion…. not because I see dollars in my bank account or because I have people asking to interview me or book me for something. I know I'm successful because the people I serve are thanking me for bringing passion back to their life…. in today's world, that means everything to me!
jbledsoejr
Great post and contest Kyle! Here is what I believe makes a great startup:
1. VISION – everything starts in the mind…to paraphrase the old saying "what the mind can conceive, man (& woman) can achieve." Great startups have to see some possibility that others can't see and then they have to get others to see it and believe it as well.
2. "CRAZY" PEOPLE – anybody who has started a business, new project, etc has had their fair share of naysayers. It comes with the territory. A great startup has to have some people that are "crazy" enough to believe in the vision and to keep believing even when the naysayers, doubters, and circumstances discredit their vision. When it seems the startup will never get off the ground "crazy" people will stay the course while making adjustments until it works out. What is the definition of insanity? 😉
3. SOLUTION TO A PROBLEM – A great startup does not have to have the newest idea or the trendy product. I believe there is nothing new under the sun. No matter if the product/service seems brand new, old as dirt, or similar to others; the main criteria here is that it needs to solve a problem. The more people that it solves a problem for the higher the ceiling for the startup.
4. LEVERAGE – Most people think of capital when speaking of leverage. I'm not talking of just money here. To be a great startup some or many forms of leverage are necessary. A startup with a small network may leverage the network of a partner or associate with a large network…a startup with little experience may leverage the experience or knowledge of someone…a startup with little time may leverage systems or people to bridge the time gap…a startup short on capital may leverage "other people's money"…no startup enters the game with all they need. The things they can't get on their own need to be obtained through leverage.
5. HUSTLE – When you are a startup nobody knows you, your product and you have no track record for that particular venture. There is no substitute for hard work and there are no shortcuts to being great. Whatever needs to be done to ensure success (or even just survival) you have to bust your butt to get it. Need to meet an important contact…how many people do you need to reach out to in order to meet the contact…HUSTLE until! Need a better design for your product…HUSTLE until! Working other jobs or projects while launching the startup…HUSTLE and work around the clock until! Work harder and smarter than you have before.
Erin McMahon
I wrote you a haiku. 🙂 The form of the haiku – marriage of the simple and complex – seemed like a good fit. I call it Your Startup Will Be Great
Act now, fearlessly,
on bold, timely idea.
Pray for X-factor.
Seven Springs Armory
Passion, fear, need, desire, financials, etc. etc. etc. All good business owners have all of these things. Unfortunately most small start-ups that start on a limited investment (like the example Kyle posted about the $100 start-up) lack something very significant in my opinion and experience in talking to people who started a small business.
Most start-ups lack a business plan. Now I am not talking about a simple little business plan. I am talking about a well thought out business plan complete with SWOT analysis, marketing plan, financials, break even analysis …the whole kitchen sink.
Mike Tyson is quoted as saying (in his chimpish little voice), "Everybody has a plan until they get hit." There is so much truth to what Iron Mike said. What I think Iron Mike was referring to at the time was that all his opponents have a plan to fight him until he hit them. Stepping out of context a little bit though and the statement is so relevant to life and especially business.
What a good business plan does is two fold. First, the good business plan anticipates the hits (recessions, slumps) and second, and more importantly a good business plan helps the business refocus when it does get hit and stay on track.
A business plan also keeps good ideas from getting side tracked. So many business' start out as something and drift away from their initial purpose in the first place. Essentially a good business plan tells the employees/owners what the business is about and forces them to stick to it. The mission statement becomes the backbone of the company when the business plan is done well from the get go.
Anyway, that is just my 2 cents. Are my 2 cents worth $100? ….to the guy who is trying to think through his new idea who decides to write a good business plan as a result of reading this my 2 cents are worth $____________!
Best of luck to all!
Bryan
Seven Springs Armory http://www.sevenspringsarmory.com
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[…] blog I subscribe to and read regularly by Kyle Lacy posed the question the other day “What Makes a GREAT Startup?” There were some interesting responses and I decided to throw my two cents in the mix as well. […]
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