I came across an interesting article regarding the link between success and performance persistence. Performance persistence is the concept that successful entrepreneurs are more skilled than others. Furthermore, research shows that entrepreneurs who have previously succeeded will have roughly a 30% chance of succeeding in their next venture, which compares favorably to an 18% success rate for first time entrepreneurs. But is the reason for this success based on managerial skill or something else?
The argument made here is that market timing can represent a huge component of successful ventures. Not to discount the importance of managerial skill, but one could argue that choosing the right time to launch a venture is a skill in its own right. In most cases, those who display strong market timing are likely to outperform their industry peers.
Even if one has a strong concept and management team, he or she can fall victim to market forces outside of his or her control. Identifying the right time to act upon an idea will surely increase performance. We have previously witnessed innovative venture concepts fail due to poor market timing. This can often be the case for tech ventures, in which the market is not mature enough to accept a particular product. We need to be sure to accurately identify the market potential for our new ventures, which should also take into account the willingness of consumers to accept the innovation.
It can sometimes be better to wait. For example, would the iPhone have been as successful if it were launched 10 years ago? Probably not. It would have opened new doors in terms of innovation, but high production costs and low consumer demand would not have correlated into profits. For my venture, I have already recognized that I will need to wait a few years. I simply do not have enough credibility to launch my venture at this point in time, in which case waiting will greatly increase my chances. I am not trying to deter others from acting now, just highlighting the importance of recognizing market timing.
Please see the below article link:
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