My views on the ingredients for startup success have changed significantly over the years. Originally, I believed that the management team was the overriding force. Now, the management team is still important, but I believe the market, including timing, for the idea is even more important. Here’s my gut allocation on how important different factors are for how I define a successful company:
- Market – 40%
- Team – 30%
- Timing – 20%
- Idea – 10%
Notice that a great market with great timing represents the majority of the opportunity for success and that the actual idea is the least important. We’ve all heard the saying that ideas are a dime a dozen and that it’s the execution that counts. Combine all the pieces together and you have a winner.