How can aspiring entrepreneurs increase their odds of launching a startup which can propel them to Inc. 5000 or even Inc. 500 status?
Those over-achievers who want to achieve this prestigious level of recognition and the financial rewards which come with it could do well to learn from the ranks of those who have already made Inc. Magazine’s lists and have survived through some of the roughest economic times we have ever seen.
5 tips for launching an Inc. 5000 worthy startup:
1. Choosing the right industry
Of those Inc. 5000 companies with the fastest rates of growth from 2008 to 2011 the 3rd fastest growing industry category was real estate at 129%. Real estate was only outpaced by government services and media, which includes the likes of Facebook. So by starting a real estate investing business it could easily be argued entrepreneurs already have the odds on their side.
2. Business Type
During the same period internet based companies grew the fastest rate (139%), followed by ‘global’ and ‘franchises’. So pursuing an internet based real estate investing business concept and harness the latest cloud computing technology can clearly improve the odds of success even further, though taking it global and launching your own franchises down the road may be a great game plan too.
3. Where to Launch From
Like tech startups Inc. 5000 firms are also highly concentrated in certain cities around the U.S. Some of those which are home to the most include New York, DC, Los Angeles, Chicago, Boston, Atlanta, Miami and San Diego. Whatever the reasons launching your real estate investing company in one of these cities could improve results too.
A survey of 2012 Inc. 500 CEOs revealed an elite level of optimism as a consistent characteristic, especially when launching a business in tough economic times.
5. The Right Business Model
In the same survey mentioned above those who launched their companies in 2008, which was of the ugliest economic years ever pointed to confidence in their business model to weather both good and bad economic times well and it seems they were right. As we’ve seen real estate investing has delivered great profits in both, though having a proven system and scalable structure has proven essential to survival and success.