In the United States, the failure rate for startups is more than fifty percent after the first five years. After ten years, that number increases to over seventy percent.  As bleak as these numbers sound, they also indicate that the remaining percentages achieve success. Careful analysis finds that there are a few specific reasons why some of these companies fail and others become successful.

Firstly, successful startups begin with a plan. Founders must be willing to revisit and modify this plan as times change, but setting out with and committing to a solid business plan is necessary for success. Creating a business plan requires a bit of expertise, both business and technical knowledge, as well as good money management and marketing skills.

Further, a good plan includes a realistic timeline. Success doesn’t happen overnight. Founders must be in it for the long haul, prepared for years of hard work and persistence. It will be beneficial to include yearly and perhaps quarterly goals and milestones to acknowledge success along the way.

Finding good mentors plays a large part in success as well. Successful businesspeople are open-minded and humble enough to admit that they do not know everything. They are willing to listen to and learn from others. Conversely, they must also have the ability to discern bad advice from good advice, and they must have enough confidence in themselves and in their product or service to be unaffected by negative talk or poor counsel.

On a related note, founders must work well with others and be able to put together and lead a dynamic team with skill. Having a strong team is essential to a company’s success, so it is important to select team members carefully. Once the team is on board, great leaders spend time building up the team members and promoting a positive company atmosphere.

A competitive spirit and a drive to win is also particularly helpful, as startups are constantly competing with other companies on the market. Potential customers have a multitude of options when it comes to products and/or services. Successful companies do everything they can to learn and understand their target audience so they can meet their needs and effectively win them over to their brand.

Beyond this, passion is the primary ingredient for success. Startups have to be passionate about what they are doing. Founders must believe in their mission, and they must believe what they have to offer can impact the world.