With his sound management skills, Narayana Murthy seemed to have taken Infosys to the pinnacle of success with the following key success factors : 1. Leadership team : The leadership team needs to balance vision with practical experience. In most cases, a technology start-up will have a visionary and/or a technical genius (most often, these are the founders) in place from day one. However, all to often, the leadership team is not rounded out by people who actually know how to run a business and how to drive sales. Building a strong balanced team can be one of the trickier aspects of creating a successful start-up because it necessarily requires the visionary and the technical genius (founders) to admit their practical shortcomings and give up some of the control of the business. The idea behind a start-up is often somebody's "baby" and, quite naturally, they want to control every aspect of its development. Once you move these people away from micromanaging the business, the start-up begins to have a chance.
2. Well-conceived business plan : This is an area where the practical experience of a well-rounded leadership team gives the start-up a leg up. The business plan needs to be practical and detailed. The business plan provides the blueprint for the growth of the company. Perhaps more importantly, the business plan is how you demonstrate the viability of the business to third party investors.
3. A strong product : It is a given that the product needs to be special ' something that will differentiate itself from the universe of competing products - but there are other important factors. Ideally, the product will be one that can be protected by patent. If the products cannot be protected by a patent, then the start-up has to be positioned to capitalize on being the first to market. Absent patent protection, being the first to market and capturing as much market share as you can before the copy-cats arrive is the next best thing. The product needs to have a ready market meaning that there is a market for it and that either there is no real competition or that the product allows the company to differentiate itself from the competition.
4. Scalability : The scalability of the business may not be critical to the success of every business, but it is critical to drive a start-up to a large scale business. In other words, if the goal is to become a large, valuable company, scalability is key. However, if the goal is a little less lofty, then scalability is a little less important.
5. Adequate capital :. Without adequate capital, the business will struggle. Perhaps the business will have phenomenal sales, but be unable to deliver the product. Or, the business may build the product, but lack the cash to...