Stop paddling - your startup needs a wave

It's pretty simple, yet few founders are aware of it, blinded by their own passion and determination. Your business success depends almost entirely on external factors (and not how great your idea is). This is especially true for startups.

You either succeed because the market likes what you do and supports you, or you fail because there is no market, or it is already well served, or it is too small or too hard to reach.

The market is the elephant in the room that too few acknowledge.

The stuff that's in your power - good management, quality, honest business practice, good recruitment, even marketing and sales - accounts for a minority, maybe 20%, of business success

So, the first step is to ask yourself: Is the market tide with you, or against you? Are you on a wave?



All the superstars can thank the market.

Nvidia, the world’s first $4 trillion company, has reached these heights thanks to the wave of global demand for GPUs to mine crypto and power AI.

Microsoft’s success is built on the back of a personal computer mega-trend that exploded in the late 1980s and 1990s, a wave they successfully rode.

Too many entrepreneurs try to do something for which there simply is no need, or for which the need isn’t nearly as strong as they think. A good idea is only a good idea if the market agrees, in which case, initial take-off should be relatively painless.

Warren Buffett refers to “Mr Market” as the force that determines stock prices. The same Mr Market also determines whether your business will fly or not.

The secret to startup success is typically to build something, promote the hell out of it, and see if there’s takeoff.

I saw a tweet this week from someone asking for tips to prepare the ideal “pitch deck,” and I responded by saying I don’t think there is an ideal template, apart from telling the story behind the idea. Investors will either latch onto it and like it, or they won’t. You can’t sell a bad idea through a great pitch deck.

It may be controversial, but I genuinely believe that getting a business started isn’t difficult; the market takes care of that. The hard part is maintaining the momentum.

Starting a business based on an idea is an act of combustion, not a choreographed project plan. It either works or it doesn’t.

Don’t paddle when there is no wave. If you don’t notice initial momentum occurring almost automatically and reasonably quickly, you simply do not have a relevant idea, and you should stop immediately. Too many try to force their business into success, but you can’t.

Location: South Africa

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