Tristart Explained
What determines a successful business from one which is doomed to failure?
Is it possible to statistically forecast the likely success or failure of a new or early stage business?
Every year thousands of start-up and early stage businesses fail. Average set up costs are in excess of $10,000* resulting in losses of many millions of dollars - this adds to the personal turmoil these failures can create.
Many experts agree that the fundamentals for business success include factors such as:
- a dynamic leader
- a balanced and experienced management team
- a good match between offering and target markets
- certain traits and team dynamics that include an appetite for risk
- the ability to react to daily challenges and exploit new opportunities
However, these subjective factors have largely been studied qualitatively and their use in predicting start-up and early stage business success is limited to the intuition of experienced professionals who have developed years of first-hand knowledge. They combine this with a heavy reliance on tried and tested practices and due diligence processes before arriving at their conclusion; and even then their success ratio only approximates 28%*.
Our aim is to improve this success rate using statistically proven solutions that offer a clear and measured understanding of, what until now, has been primarily based on gut feeling and instinct.
*National Bureau of Economic Research