Let\u2019s talk about Bill Gross, the serial entrepreneur.\u00a0 As it turns out, there\u2019s also Bill Gross the billionaire investor, but that\u2019s not who we want to talk about.\u00a0 We want to talk about the other guy.\u00a0 The entrepreneur.\u00a0 This Bill Gross has personally started over 100 companies, and more than 40 of those have either gone public or have been acquired.\u00a0 He is the founder and CEO of Idealab, a company whose sole purpose is to churn out startups.\u00a0 In that role, he wanted to discover why some of Idealab\u2019s startups succeeded while others failed.\u00a0 He came up with five factors that successful startups hold in common, but he missed the sixth and most important factor.\u00a0 To learn about the five factors he identified in successful startups, and the sixth factor that he missed, please continue reading below.<\/p>\n
\u201cSuccess seems largely to be a matter of hanging on after the others let go.\u201d<\/strong><\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>~ William Feathers, Journalist<\/em><\/p>\n In order of importance, Bill Gross\u2019 five success factors are:<\/p>\n Factor 5. \u00a0Idea.<\/u><\/strong>\u00a0 Strange.\u00a0 You\u2019d think having a good idea for a business would be the most important factor for a startup.\u00a0 Obviously, it is essential to start with a good business idea, but according to Gross\u2019 research, it ranks below the other four.<\/p>\n Factor 4. Team\/Execution.<\/u><\/strong>\u00a0 We can see why this ranks above \u201cIdea.\u201d\u00a0 What good is it to have a great idea for a business if you don\u2019t have the right people with the right skills to bring it to life.<\/p>\n Factor 3. Business Model.<\/u><\/strong>\u00a0 The business model needs to be consistent with the business\u2019 mission and with its growth potential.\u00a0 The business model for a small, boutique, niche player will be very different from a broad-based, fast growth company that\u2019s expected to go public.<\/p>\n Factor 2. Funding.<\/u><\/strong>\u00a0 The startup graveyard is full of companies who simply ran out of money.\u00a0 In many cases, the founder succumbed to rosy sales projections and overly optimistic estimates for how quickly the company would achieve profitability.<\/p>\n Factor 1. Timing.<\/u><\/strong>\u00a0 This surprised us a bit.\u00a0 Not that timing isn\u2019t important.\u00a0 It is.\u00a0 Obviously, most retailers will want to open their doors before the Christmas season, not after.\u00a0 A distributor of farm implements will want to hold forth before the growing season, not after harvest time.\u00a0 But the timing issues for many businesses are not quite so obvious<\/p>\n So, according to Bill Gross\u2019 research, if we\u2019ve got these five elements in place, we\u2019ve got a good shot at launching a successful startup.\u00a0 We\u2019ve got a good business idea and a team that can bring it to fruition.\u00a0 We\u2019ve got a business model that will be a good road map to get us where we need to go, we\u2019ve got enough cash in our war chest to get us through the tough spots, and our impeccable timing will make us all look like geniuses.\u00a0 So what did Gross miss?<\/p>\n Commitment\/Determination.<\/u><\/strong>\u00a0 Starting a business is not a casual thing.\u00a0 A new business will be unrelenting in its demands for time, effort, and money.\u00a0 Murphy\u2019s Law (\u201cWhat can go wrong, will go wrong\u201d) will be in full force.\u00a0 So if you\u2019re going to start a business, your battle cry better not be \u201cLet\u2019s give it a try!\u201d\u00a0 You might remember a scene in Star Wars when Luke was struggling to master The Force and said to Yoda, \u201cI\u2019ll try\u201d to which Yoda replied, \u201cNo.\u00a0 Don\u2019t try.\u00a0 Do or don\u2019t do.\u201d\u00a0 Or if you weren\u2019t a Star Wars fan, maybe you remember a line from Apollo 13 when the ground crew at NASA was trying to figure out how to get the damaged spacecraft home safely and the Ed Harris character said, \u201cFailure is not an option.\u201d\u00a0 It\u2019s like that.\u00a0 If you want to be an entrepreneur and start a business, it\u2019s like that.\u00a0 If you can\u2019t muster the commitment and determination to do whatever it takes, no matter what, to get the thing launched successfully, don\u2019t do it.<\/p>\n If the company is at the starting gate and has all five of Bill Gross\u2019 elements for success in place, it will still fail without absolute, unwavering commitment and determination from the founder.\u00a0 Even with that level of commitment and determination, success is not guaranteed, but without it, failure is. \u00a0As hotelier Conrad Hilton observed, \u201cSuccess seems to be connected with action.\u00a0 Successful (people) keep moving.\u00a0 They make mistakes, but they don\u2019t quit.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" Let\u2019s talk about Bill Gross, the serial entrepreneur.\u00a0 As it turns out, there\u2019s also Bill Gross the billionaire investor, but that\u2019s not who we want to talk about.\u00a0 We want to talk about the other guy.\u00a0 The entrepreneur.\u00a0 This Bill Gross has personally started over 100 companies, and more than 40 of those have either<\/p>\n