I was asked today how much I think luck plays into a startup’s success. I replied that luck is important – but it can also be defined and monitored.
Luck, in this sense, is defined as anything that affects your business that isn’t under your control. Maybe Google decides to copy your product and puts $1B behind its development. Or perhaps there is a market shift from laptops to tablets, which would cause tablet-based software to increase in revenue. These are both luck-based factors which you have no control… or do you?
If you noticed the need for laptops dropping – wouldn’t it be smart to focus your efforts on developing tablet software over laptop software? Luck is controlled, risks mitigated, and the entrepreneur can set themselves up for an optimal outcome.
Bill Gross takes a different approach when he talks about startups who succeed vs those that fail. He calls it “timing”. In essence, he’s talking about the same thing. Outside factors are important to the success of your business. You just need to be listening.