Finding a worthy startup isn’t easy. People really never know for sure which startups are going to succeed. They’ll say that they did after the fact, of course. That’s really how lots of successful people in business are. They’ll take a risk, and the risk will work for them, and they’ll say that they somehow knew that the risk was worth it and that it would work. They’re wrong: the people who lost said the same thing and knew the same thing. Finding a way to join one group but not the other really is hard, and it really isn’t something that is entirely within anyone’s control.
Overall, the best startups are the ones that actually have a plan. Lots of people approach startups without any real strategy, and that’s where you need to exercise caution. You have to look at the business plan of these startups, or you’re not going to get anywhere. They’re also not going to get anywhere.
Many of the best startups have some sort of original product. This sort of thing can be difficult to estimate, obviously. However, if the startup has a genuinely new and creative idea, you stand a very real chance of being able to make it work in the marketplace. We all know that plenty of unoriginal business ideas have made it. However, it is still true that a lot of the best startups did something completely new. If you find something like this, try to stick with it.
Of course, businesses are all about people at the end of the day. You need to look at the startup’s team. If the startup has a team that is well-balanced and that features a wide range of talent and personality types, then the business is going to be that much more likely to succeed. If the team is disorganized, does not work well together, or has a lot of internal problems, those problems are going to become your problems soon enough.
You can’t evaluate startups in a vacuum, and there is a temptation to do so. People believe that they’re going to need to look at the business plan and only at the business plan, and from there, they will be able to evaluate the quality of the startup. However, the business plan could be skillfully devised and it still might not work due to the current conditions of the market. The business plan could be sound, but this might not be the case for the team. If you evaluate all of the necessary conditions for business success in the context of the new startup, your chances of success are that much higher.