Every company has its recipe for success. However, startups have the advantage in that can be flexible and more innovative than other companies, and they are killing it in business. Here’s why startups across the globe are able to reach success:
The Right Attitude Can Drive the Right Results
With the right attitude, startups can drive the correct results. The “can do” attitude of companies such as Uber and Lyft enabled them to disrupt the cab industry. It only took three years for these ridesharing services to impact the Los Angeles cab industry. Conventional taxi cab ride trips in Los Angeles have declined by 30 percent since Uber and Lyft’s entry into the L.A. market. This “can do” attitude isn’t new. Amazon started as a small startup that grew into a behemoth of a company in just over 20 years. Amazon is now building another headquarters that will house at least have 50,000 employees, and cities throughout North America are competing for its attention.
Startups Foster a Thriving Culture
Being able to cultivate a culture that thrives is vital in developing a successful startup. A thriving culture prepares startups to transform and grow, and that means more jobs for the communities that house them. A flourishing culture also works as a vehicle that attracts investment opportunities from a variety of cities. From the San Francisco Bay area to Tel Aviv, Israel, startup hubs are popping up around the world with the support of cities and a heightened entrepreneurial spirit. Tel Aviv hosts daily networking events and is home to thousands of startups. Waterloo is Canada’s tech hub and home to startups and big tech companies alike, including Vidyard, BlackBerry, and Shopify. Top tech talent comes from the University of Waterloo, giving startups the ability to leverage human resources locally. Mixed-reality startup Magic Leap got support from the city of Plantation, Florida and the state to bring 752 jobs to the city. The company also has hubs in Tel Aviv and New Zealand. San Francisco has one of the top startup-friendly cultures in the world.
Startups Innovate and Invent
With this new thriving business model, cities are seeing a huge growth in their community if they become more tech-friendly. One example is Raleigh, North Carolina, which is now considered as one the top 10 places for companies to set up business. This is due in part to the colleges within the area, which heavily focus on computer science degrees. With a community that fosters invention and innovation, startups will not need to look too far for capable workers, as the city produces high-quality talent for them to fill their every need.
The can-do attitude is catching on quickly around the world to the point where major cities are now going out of their way to attract tech talent.
If that new exciting startup becomes a unicorn — tech startups that boast a valuation of $1 billion or more — it will be forced to hire new workers to help expand the business. If the company is located in a city that is spending money to keep up with the tech industry, then that group will find a capable worker within the city limits. By hiring someone in the city, that person will now work for that company, stay in the city and spend the money they are making in the city. This will ultimately lead to more revenue to help grow more and attract even more companies.
Successful Startups Create Jobs
With tech hubs and educational systems that support tech ecosystems comes a massive influx of innovation and invention across the globe. Some of these inventions and innovative concepts develop into unicorns. From Airbnb to Dropbox, unicorns are becoming a herd of their own. These successful unicorns work to drive in jobs.
Startups Leverage Crowdfunding for Capital
Startups are moving past the traditional funding options of banks and looking to more creative, flexible options. Crowdfunding facilitates startups’ needs for raising capital faster than that of traditional banks or looking for venture capitalists as their first option for backing their company. Crowdfunding platforms, such as Indiegogo and Kickstarter, are helping startups to fund their ideas, innovations, and inventions, all while giving them the freedom to be more creative and quickly see if the innovation they are developing is worthwhile.
With companies doing so well, that will also mean that they are paying well. Top tech cities such as Denver, San Diego, and Dallas see some of their tech-savvy citizens making close to $100,000 year or more as the average salary. This attracts new citizens to move to the area in hopes of finding a job that can pay higher wages than where they currently reside and potentially (and exponentially) increase their incomes.
A Recipe for Success
Startups are absolutely killing it, using a recipe for success that involves fostering a thriving culture, having the right attitude and leveraging innovative funding options. By putting these strategies into action, startups go from idea to success, attracting city-supported investment and development jobs that help grow the community.