Ready to Grow Your Business Fast?
Here’s How I Grew Five Businesses, and Eventually Sold One to a Fortune 500 Company.
Guide to Business Success and How Business Succeed
Guide to Business Success and How Businesses Succeed
Every entrepreneur wants to create a successful and profitable business; this is a basic and obvious statement. But what does not seem too obvious to most small business owners is how to run a successful small business. To succeed in business today, you need to be flexible and have good planning and organizational skills. Many people start a business thinking that they’ll turn on their computers or open their doors and start making money, only to find that making money in a business doesn’t just happen as such. In this article, we’d look at business success – what business success is all about, how businesses succeed, and some key tips you can apply to your business to achieve business success. So, keep reading.
Business Success Definition
A successful business makes efficient and effective use of resources like human capital, money, inventory, plant, and equipment. A successful business is a living, breathing organism that contributes to everyone’s wealth and quality of life. It is crucial to remember that business success is never a certainty or a final goal. It is a journey that never ends since any one of the factors that could have an impact on a business’s success could alter at any time.
Business Success Dimensions
Personal: For entrepreneurs, the process of creation – starting with an idea and producing something that lasts – provides immense gratification. Seeing your family name on the corporation gives you a sense of ownership. Successfully confronting problems and, as a result, discovering abilities and strengths you didn’t know you possessed are undoubtedly parts of personal success in business.
Financial: Successful businesses provide a significant return on investment for the shareholders who put their money into the endeavor. The company’s founders, who are typically also stockholders, can produce riches for their families and future stability while simultaneously living a more wealthy lifestyle. They define success as being able to offer a better life for their children than they had for themselves when they were younger.
Social: Business success is also measured by the benefit they provide to society. Some of the products and services they provide have explicit social purposes, such as helping the environment or offering educational opportunities for children. Others are really dedicated to philanthropic giving and becoming good corporate citizens.
Longevity: With the number of organizations that fail or start off strong only to falter in the competitive marketplace a few years later, the capacity to sustain success in the tumultuous, ever-changing business environment is another measure of corporate success.
Customer Satisfaction: Many of the goods and services we use every day were established to assist clients in solving an issue. Seeing that your goods have made a major difference in the lives of your consumers is one of the driving elements that keeps company owners working persistently to build even better solutions. Praise from delighted clients creates a sense of success that is as significant to some company owners as the financial gains they get.
Employee Satisfaction: Business owners can be able to assess whether the satisfaction of their employees is their topmost concern by assessing how hard their workers work and how dedicated each member of their team is to the goals of the business. This component of business success is measured by how many employees stay with the company for five, ten, or more years – sometimes their whole career.
How Businesses Succeed
Certain key attributes make a business successful and can be synthesized into a stepwise process of how businesses succeed.
1. Pursuing a defined mission
The purpose of a small business is critical to the operation of all areas of the organization. It assists the entrepreneurs in growing the firm with a large aim in mind. It offers employees something to strive for and provides them a feeling of purpose. It also informs clients about the company’s values and fosters personal relationships.
Your goal is more than just a flag proclaiming your support for something. Your company should operate by its goal.
2. Pursuing long-term goals
Successful businesses have both short- and long-term goals. Long-term goals are vital, whether they be investments in new technology that will not be available for several years or aiming for a particular level of growth in the next decade. Instead of bouncing from tiny success to small success, a long-term aim integrates those modest victories into a larger image.
3. Focusing on customers
The most successful businesses prioritize customer care and the customer experience. The first stage is to develop items and services that clients desire. However, concentrating on customers extends beyond your products. Customers are fed up with dealing with businesses via phone menus and automated chat bots. They are looking for a human connection. A consumer wants to know that their company is appreciated and that you will endeavor to address their difficulties. A few negative client experiences may have a significant influence on how well-liked a company is.
4. Retaining employee talent
Good managers help a successful business maintain good personnel on the payroll. Another approach is to create a purpose with strong core principles in which workers may believe. The most successful businesses identify and seek to retain their top employees. That entails more than just good compensation and a few perks.
Offering additional training opportunities and other incentives such as telecommuting days are common approaches for businesses to retain their finest employees. Another example is benefit packages that provide flexible sick and vacation day options. Finally, employees must be aware that chances for advancement, such as moving up the ladder or laterally within the business, exist. You won’t lose someone to a similar position at another firm this way.
5. Employing a great management team
Successful businesses, large and small, require effective management, from the top down to foremen and shift supervisors. Quality leaders provide communication, a natural business culture, and clear goals and objectives to their staff. Criticism is constructive, and employees feel appreciated while also knowing where they need to improve. A good leader embodies the corporate culture, follows norms and rules and serves as an example to workers. Finally, successful leaders make their staff feel appreciated.
Being a bad leader isn’t just about making poor decisions for the company. In fact, a bad leader can make good financial or marketing decisions, yet lead a team of miserable employees. From failing to empathize with an employee who struggles to communicate in an unclear or frustrating manner, bad leaders inspire employees to quit or switch departments left and right.
In picking out leaders at your business, it is important to have an expert who whispers advice and coaches you on what suitable steps you can take.
Do you need the services of a small business coach for your business? Then click here to book a free call with one of our small business coaches now.
6. Keeping detailed financial records
Financial records are an important part of how businesses succeed. Businesses must have a clear understanding of how much money they make and spend. Keeping track of money allows organizations to identify beneficial tendencies as well as potential financial hazards. Businesses that understand their finances might choose to invest, seek innovations, or pay for new equipment or suppliers. It is also how firms determine when they need to hire extra employees.
7. Continuous innovation
People will imitate you if you make a high-quality product. That’s why the most successful businesses are always inventing, whether it’s improving on existing items or creating totally new ones.
Improving a product, finding a means to give a reduced price, or inventing new ways to express gratitude to clients are all examples of effective innovations. Never give up on amazing ideas.
15 Keys to Business Success
1. Provide a Great Product or Service
While marketing is important for building excitement and increasing visitors to your brand, it can only get you so far. Once the consumers arrive, the items or services must be good enough to meet or exceed their expectations. This is how you develop a lifelong repeat consumer who will aid the business by spreading the word.
Making consumers become brand ambassadors is one of the most successful and cost-effective strategies to get a small business noticed. However, this can only happen if the service is of high quality and, most all, delivers an amazing solution to a real problem that fits a market demand. Many entrepreneurs have created mind-blowing and unique goods that fail, while others with a simple idea dominate the market – Why? Perhaps the first group became so focused on the end product that they forgot to resolve an issue, whereas the second group solved a common problem to which many potential buyers can connect.
2. Focus on Customer Service
A NewVoiceMedia research found that 51% of customers won’t do business with a company again following a negative service encounter. Additional research also shows that it usually takes numerous happy customers to make up for one unhappy one.
Make providing excellent customer service a top priority since devoted consumers are much simpler to sell to. To make sure that your small business is offering a service that is superior to that of your rivals, evaluate your existing customer service and implement the necessary modifications. You could need to spend money on employee training, change your return policy, or make simple adjustments like immediately answering consumer voicemails or emails.
3. Expand Your Marketing Efforts
You must use effective marketing to boost your sales, but doing so doesn’t have to be expensive. There are several low-cost alternatives to sell your goods and services, such as:
- Advertising your business on your vehicle with a vehicle wrap
- Cold calling (yes it can still work)
- Creating and using a promotion kit
- Developing business partnerships and doing cross-promotion with complementary businesses
- Giving free workshops or classes related to your products or services
- Involving the newspapers in your grand openings, moves, or charity events
- Joining professional organizations
- Sending out promotions with your invoices
4. Do Your Research
Business is never simply business; it must be extremely personal as well. This is not to say that entrepreneurs should throw caution to the wind and launch firms based simply on their own opinions. For example, you may believe that walking a cat on a leash is a terrific idea, but will a cat leash business be successful? Gut instincts are useful, but they are not the same as information. It is derived from data, which is derived through study. How large is the prospective consumer base, and what qualities do these people have? To effectively target customer profiles, it is vital to understand what drives and motivates them. One of the most important factors to small company success is research.
The competitive assessment is another important part of the research. To establish a brand that meets the demands of the market, you must first comprehend the playing field. Here are some questions to think about asking:
- Are there any companies that may be considered competitors?
- What can you learn from your rivals?
- Is there one that sticks out as a leader in the industry?
- If so, how did they rise to the top?
- What were the secrets to their small company’s success?
- Have they made any errors that you might have avoided?
5. Update Your Business Plan
One of the key factors for business success is to regularly update your business plan.
Before establishing your business, you did create a business plan, correct? For several reasons, including determining the viability of your business idea and obtaining a loan or equity funding, a business plan is essential for startups.
It’s not too late to make one if you haven’t already. Successful, well-established companies revise their business plans every year to assess their successes (or lack thereof) and choose new objectives or paths.
The income statement, the cash flow forecast, and the balance sheet, which is all included in the business plan’s financial section, provide an overview of your company’s financial health. From there, you may decide how to increase sales, decrease losses, or reduce costs to make your company more lucrative. You require a strategy to achieve your goals if you want your company to be more successful.
6. Keep Things Organized
This point cannot be overstated. Access to information quickly and effectively will make a huge impact in the everyday operations of a small business, whether it is through a real file cabinet or an ordered digital folder structure in your computer. It is strongly advised to retain individual folders for each part of the business that are suitably labeled and structured in a way that makes sense to you and is intuitive enough for everyone in the firm to access as needed. Backups of digital information are very critical, particularly when it comes to financial data. It is critical to keep them in a secure location to avoid potentially catastrophic circumstances later on.
7. Detailed Record Keeping
Proper bookkeeping allows you to understand the financial health of your company and what may become an issue in the future. It might be the difference between becoming a success story for a small business or not. At the same time, it can help to envision future forecasts and aid in company planning. You must grasp how much money the company makes and how much it sells. While many entrepreneurs consider hiring an accountant to perform their taxes as needed, understanding your statistics entails much more. You must be able to make changes to your business every quarter to ensure that you stay on pace to meet your annual goals.
It pays to clean up your records when it comes to excellent tax record keeping. Here are three other ways that accurate records might benefit a small business owner:
Identify income sources: Using the books, you should be able to distinguish between business and non-business revenues and taxable and nontaxable income.
Maintain a record of deductible expenses: everything should be noted as it happens to prevent leaving anything out when completing tax returns.
Support items listed on tax forms: If the IRS requests extra explanation on the items reported on the tax returns, a comprehensive collection of precise and thorough documents will be crucial to speeding the inspection.
8. Keep Focus & Have Patience
Here’s another amazing small company success tip: to help you stay to a plan and avoid distractions, make a “to-do list” every night before going to bed and attack it first thing in the morning. However, it is critical to create a realistic to-do list in order to avoid setting yourself up for failure.
Maintaining focus on a specific objective is critical to achieving business success. The overarching aim must be determined, and smaller milestones must be established along the route.
That being said, it is equally critical to be resilient, not just in the face of everyday problems, but also in the face of overall company success expectations. Most successful firms do not emerge quickly; it may take years for a company to reach its full potential and become a small business success story.
9. Be Prepared to Make Tough Decisions
Every business owner must make sacrifices for the betterment of the company. However, there may come a time when the most difficult decision you must make is to set your ego aside. Pride may be fatal to a business, and not all decisions will always reflect your values and ideals. And, while a small business owner should have substantial personal and emotional stakes in the company, these should not be the driving force behind every daily decision. You should realize when you need assistance and acknowledge that there are individuals who may know more about some parts of the business than you do.
It is OK to seek assistance as a business owner. You must be willing to leave your ego at the door and listen to what others have to say, especially if it comes from your consumer or business coach. It is difficult to approach a problem with humility and an open mind, but it is the greatest way to make smart business decisions.
10. Keep Your Overhead to a Minimum
One of the keys to small company success is cash. Most business owners recognize the importance of capital liquidity as the first line of defense against any unanticipated issue. However, not all small firms can maintain a substantial enough reserve to sustain unexpected income losses or expenditure spikes.
A decent rule of thumb is to not increase the company’s overhead above what its cash reserves can support. It is far simpler to expand the firm as cash liquidity improves, rather than being forced to reduce later because the business couldn’t afford its overhead expenditures in an emergency.
11. Know the Operational Needs
You must understand everything about your company, and this knowledge should not be restricted to figures. It is critical to understand what the organization needs to function efficiently. Employees, equipment, supplies, and everything else required are all included. However, there is also the intangible factor to consider. Efficient operations and inventory management may have a significant impact on operating expenses. Researching best practices in a certain market and testing to see what works best for the firm (by trial & error) may be a time-consuming and laborious task. However, it will increase the profitability and performance of your company.
12. Build Your Online Presence
Your small business has to have an online presence since it is very quick and simple to create a professional-looking website. According to statistics from the E-commerce Wiki, 88 percent of shoppers now do their shopping research online before going to the store.
Many small businesses only need a basic website that outlines who you are, what you do, and how to get in touch with you. Your website should at the very least include:
- A summary of what you do—your products and services
- Testimonials from customers
- Your address, including a Google Maps link
- Your business name
- Your contact information
- Your logo
- Your mission, e.g. “We make the best pizza in town…”
Social media may also be a terrific tool for marketing your company, depending on your target demographic. For the majority of businesses today, creating an online presence on Facebook, Twitter, and Instagram isn’t really optional for some businesses these days.
13. Hire the Right People and Treat Them Well
This is one of those areas that may come under making difficult decisions, but the organization must have A+ team players. All small business success stories have one thing in common: they understand that the people they recruit are critical to their company’s success. Every employee at a small firm, more than in a huge corporation, must be trusted to perform his or her daily tasks with as little monitoring as possible. To reduce overhead costs to a minimum, the structure must be as lean as feasible. As a result, no small business can afford to squander a job by recruiting the wrong person. The converse case, however, is true. No small business can afford to lose a top-notch employee. So, create a team and treat them nicely. Listen to them and assist them in growing.
14. Always Look to Improve
To achieve business success, stay away from becoming complacent and innovation-blind. It’s time to start searching for methods to improve once things get going well and the company finds its rhythm. Perhaps it involves adding a new item, developing a special taste, automating a manual step in the process, or opening during more hours. Whatever it is, keep in mind that there is always an opportunity for development in any company. To prevent becoming stagnant, you must remain active. Innovation is crucial to your success as a small firm.
15. Build Word of Mouth for Your Business
Word of mouth is more crucial than ever, whether you run your business in a small town or a big city. Building a solid reputation is essential to the success of your business because the majority of customers use the internet to research businesses before choosing where to purchase.
How can you spread good word of mouth? By offering excellent, professional service, establishing and maintaining a solid local (and online) reputation, and obtaining recognition by supporting and sponsoring neighborhood groups and charities. This all adds up towards lasting business success.
So, there you have it. We trust you found this article helpful.