After surveying a number of sources spanning academic research, venture capitalist opinions, entrepreneurial opinions, and my own biases, I put together the following list of critical success factors for a high-growth startups.
This was originally used in a seminar for the Portland State University Engineering and Technology Management department. The factors are roughly ranked from highest to lowest importance (although they are all "critical" and I'd be the first to admit that some of the rankings could certainly be debated.)
But the first factor is definitely the most important of them all. Each factor on the list is worth some thought if you're going to start a company.
1. Commitment and perseverance of the CEO
2. … balanced with a willingness to change the strategy (you never get it right thefirst time)
3. Compelling customer proposition
4. Emerging (or changing or disruptive) market with rapid growth potential
5. Timing (luck never hurts)
6. Experienced team (experience with the target market; experience starting a company; If you haven’t done this before, find some good advisors; hire experience)
7. Understand who will buy and why, how will you sell, how long is the sale cycle
8. You must have a believable competitive advantage
9. Create barriers to entry
10. Make sure the business can scale profitably
11. Understand the competition
12. Conserve cash – and always be working on your next financing
13. Get as much money as you can – you’ll need more than you think
14. Don’t leave money on the table simply because you worry about “losing control”
15. Founders must be prepared to replace themselves
16. Plan on self-funding for at least the first several months (i.e., no salary)
17. Anticipate potential problems and threats – only the paranoid survive
18. Once you get venture funding, hit your milestones, or there won't be a Series B
For a "mistakes to watch out for" perspective, see "17 Mistakes Startups Make" on the OGI Capstone Resources web site. The site has many additional resources at the Capstone resources page.