Any business, startup or otherwise, will be successful when:
- It selects the right business model to execute its idea.
- There is demand for its products or services.
- The business strategy and business operations give it a competitive advantage over its competitors.
- The business evokes trust amongst its customers.
- The promoters select a great team that helps the company operate efficiently, produce great products and services, and its business operations are customer-centric.
Let me briefly explain these points with an example of a successful company.
Airbnb began by identifying a service – renting homes for which there was demand in the location where it started its operations – San Francisco. It worked on its product and fine-tuned its business model, taking feedback from its customers. Its functions and procedures were all customer-centric. As it evolved, it was able to build trust with both its hosts and renters.
Brian Chesky and Gebbia, the initial two promoters, added Blecharyzk to the promotor team. The latter helped Airbnb develop its platform. As the business grew, Chesky, who became the CEO of the company, spent a lot of time hiring individuals that had not just the skills but were fully aligned to the business culture and ethos of the company.
The product and the platform were continuously upgraded and developed to keep these at a competitive advantage. Its business strategy and business model constantly evolved to sustain the competitive edge over competitors.
The above example will tell you that at the heart of a successful company is a great business strategy and business model executed efficiently and diligently by an efficient team aligned to the company’s vision.