We hear about new startups every day. This startup develops a mobile app that converts photos into paintings. That startup sells lab-grown meat. Another startup transforms public transportation in Pakistan. Large and small startups are founded every day and it’s hard to keep track of them all. But what are the commonalities in all these projects and what’s the difference between a startup and a barbershop?
The Platinum Software Development company, as a former startup which is now a successful company, wants to explain all these small differences and define a borderline. Why does everyone want to found a successful startup? What are the first steps? What’s the most important metric? Let’s take a look together.
Scaling and demand is the key
There are two ingredients in every successful startup. It has to produce something everyone needs and it has to be able to deliver all these products and services to customers. Some businesses lack the first requirement since their target audience is very limited and some businesses can’t reach all their potential customers because they have a limited production capacity.
Only when there are no limits to their potential market and capacity for delivery can we talk about a fully-fledged startup. If a new business sells very good coffee beans with a Cola flavor, delivering to the local neighborhood then it’s not a startup, it’s a local business. But if it sells beans and ships them around the country or even to several countries with people buying up their product then it’s a startup; because it can scale up until it hits its maximum market capacity.
That’s why the majority of startups nowadays are related to IT and digital software; they don’t have such problems because their products and services can be delivered all around the world in seconds. When the Platinum Software Development company was founded, its goal and market were pretty clear: to provide high-quality digital products to people around the world. Since then, we’ve developed a lot of services that tens of thousands of people use such as NOAH, BTCNEXT and the QDAO DeFi ecosystem.
How do we measure Startups?
The most important metric for a startup is its growth – this is not fixed. To achieve success, the startup should set a growth goal, let’s say 2, 5, 7 or 10% per week or month which it should try to hit consistently. Why do this?? And how should growth be measured? The best metric to use is revenue if you actually sell something or if the startup doesn’t have monetization yet, look at the active daily user metric. If this set goal is met consistently, the startup is doing fine, it can raise a lot of investments.
If not, its founders have to change something in order to meet their goals. The metric is rather an encouragement to the owners who have to find new creative ways to grow their business. If a company grows 5% per week starting with only $1,000 in revenue per month, then 4 years later it will be making $25 million a month. That’s why everybody wants to found a successful startup.
Competition never ends
How did we achieve success? Is there any secret that we can share with our readers? The secret is that there is no secret. After starting a company, it’s necessary to focus on doing things better than others do because the competition is always very high.
Raising investments helps companies grow faster but it shouldn’t be the main goal. Investors rarely miss a successful company, thus money will come if the founders do everything right. The Platinum Software Development company always gave thought to quality and still thinks about it every day. That’s why we have so many followers and users. We try to never let them down and in return, they make us successful. That’s how startups work.