The business world is full of surprises and challenges. Entrepreneurs must make decisions that will have an impact on their business in the short and long term. While there are always individual procedures that should be followed, depending on the industry and company, there are also six keys to making your business a success that apply to any business. When you understand the basics of owning and running a successful business, you have the foundation you need to move your business forward.
The key to success in business is to focus on producing better results and performance from the same activities, capital, and people. It's about identifying, improving, and making the most of all the ignored, hidden, and underperforming opportunities that currently exist in your own company. It's about getting more for less, optimizing and multiplying results in your company with minimal effort, expenses, and risks. Poor financial management, planning, anticipation, and foresight are the main reasons for business failure. Using the right financial information will help you make the right daily decisions and eliminate the 20 silly mistakes related to money.
Smart business owners understand that marketing and sales are about creating an advantage in the market by testing and measuring their results consistently. Not every strategy you try will work for you. You have to understand the fundamental principles of marketing in business and keep trying different things, constantly improving the results until you get a proven, proven, and predictable result. This includes your team members and key partners. Building a winning team means getting people to work well together.
The right people doing the right things at the right time, in the right way, and for the right reasons. It's about relationships, trust, attitude, contribution, responsibility, and execution. What I mean is that each of these companies has been based on the six main key drivers of success in any business; however, the most important and fundamental factors will always be money and marketing. Regardless of the driving force of the mythology of owners, certain success factors have a greater impact depending on where in the business growth cycle the company is at. For example, for a new company, the critical success factors for business growth will be money, marketing, and product.
As the business grows and gets bigger, other factors such as development of owner skillset, equipment, and systems also become very important. Although each of them is as important as the other, the most important critical success factors for business growth will always be money, marketing, and product. Most companies cover everything related to product offering a product or service good enough to succeed. According to countless research results, marketing, sales, and money are small businesses' biggest challenge. But the only key factor responsible for most success or failure is money management.
You can read How to Eliminate the Biggest Money Mistakes in Small Businesses for all the details. After failing many times in business I agree with numerous business analysts that out of six main business drivers mismanagement of money is main factor responsible for bankruptcy of companies. One of most important business lessons I have learned over 30 years which made greatest contribution to my success was one from Steven Walker (California) who taught me that all information you need to make right decisions regarding your business is in your numbers. It will provide you with financial anticipation and foresight to make right daily decisions. Do you want to know where to spend your money on advertising where most businesses come from what your most valuable products and customers are? Where is there significant potential for growth and profitability? Listen to your numbers they will guide you. Without these numbers you won't be able to make accurate daily decisions.
Another way to think about topic of optimization is use 80-20 rule. This “rule” tells you that five to nine key success factors are more important than anything else combined in terms of how much money you make. If you reapply 80-20 rule you'll find that one or two of those factors are more important than all others combined so you'll want to work on them first. It's no secret that many companies tend to fail within first five years of being open. In fact according Investopedia whopping 45% of startups fail during first five years of opening.
This could be due to factors such as not creating viable business model having limited finances not creating solid and reliable team not identifying ways differentiate yourself from competition. It won't be easier for you make your business successful if you're not organized. When you're organized it'll be easy complete your daily or weekly tasks stay on top of your to-do list. You should also encourage your staff or team get organized as well. That way they'll work together as team achieve their goal which is ultimately grow business. Small differences in any these key areas can make big difference in success growth profits revenues. Each these six key success factors has its own numbers or critical success factors for business growth.
Certain success factors have greater impact depending on stage of business growth cycle company is in. The success of your business will come from your ability identify analyze manage performance these simple but very important indicators that are lagging behind leading your company. Measuring main key numbers in six key success factors for business growth will allow you have retrospective vision ability understand why you get certain results (numbers) in your business. You will succeed or fail depending on how you address your unique key success factors grow your business. Sometimes focusing particular area can make big difference. To unlock true potential of any small or medium-sized enterprise it's essential understand six keys unlocking success: financial management; marketing; product; owner skillset; equipment; systems; organization; 80-20 rule; numbers; team building; relationships; trust; attitude; contribution; responsibility; execution. These keys provide entrepreneurs with foundation they need move their businesses forward achieve growth profits revenues they desire.