Facebook, Google, Apple, and Microsoft didn’t make it to the top by mistake. The founders spent years working long hours to attain the success they have today. About 90% of startups fail, so it’s vital to study the best practices of successful startups if you want yours to succeed. You need to do everything right to dramatically shorten your path to success. Here are five secrets behind successful startups.

• They Hire Top Talent

Most people are very good at one thing and not many. You may be very good at coming up with great ideas but bad at implementation. Or you may be bad with technology. The only way to succeed is by bringing the right people onto your team. 

Hiring top talent is vital because employees are critical to the success of any business; they are a key source of competitive advantage. Talent drives business value, so your startup will be able to survive in a competitive business environment.

A skilled marketer will get your product out in stores fast, while an expert product developer will create products that provide value to your customers. Identify your weaknesses and hire people who are skilled in those areas.

• They Research the Market Extensively

The major reason startups fail is because they don’t fit in their markets. Do lots of research to identify the value you can offer to consumers and know how to reach them quickly and effectively. In your research, you’ll identify three different types of customers:

• The decisive customer: This customer already knows what they want and completes the purchase quickly
• The learning customer: This type starts out with no knowledge at all 
• The impulsive customer: This customer buys products on impulse

Market research helps you understand how your target customers think. You can adapt to their needs and turn them into regular customers—or even brand advocates.

• They Raise More Money Than They Need

The second reason why startups fail (29% of them) is because they run out of funding and personal money. Having enough money means reaching cash flow positive. You won’t have to go out and raise another seed round during development.

Most startups rely on different fundraising options—grants, angel investors, venture capital (VC) funding, and microloans. Some entrepreneurs take a loan on car title to seed their startup and allow it to grow at an exponential rate.

Get all the money you need—and a little more—upfront. Time spent raising money again is time you could spend growing your company. Get the working capital you actually need—not what you think will be sufficient.

• They Prepare for Change

Agility is the differentiating feature of successful startups. They are always prepared for change. Research shows that when the coronavirus pandemic struck, agile companies outperformed others in adapting. Many things will happen that will challenge your business. A competitor may launch a better version of your product, a supplier may fail to fulfill orders, or your partner may quit. 

You must be ready to endure the storms and adapt quickly. Being prepared can help you adapt quickly to both external and internal market changes. Businesses that respond rapidly and are flexible enough to meet changing customer demands are more likely to thrive.