One of the sad realities of business is that only a small percentage of all start-ups succeed. Starting a company is a risky business. Entrepreneurs face obstacles at every turn.
Of course, we all know there are plenty of reasons why businesses can fail, but what about the reasons they succeed? Are their commonalities between companies that are successful? If so what are they?
I came across an online article recently by Success Harbor: https://www.successharbor.com/ which I thought I would share in this week’s blog:
By examining successful companies, it turns out there are some key reasons why companies succeed. Here they are:
- Direction
Every business needs a leader with a vision. During the difficult times, the business owner needs a clear idea of the end mission and how the company will get there. A good business leader keeps the long-term in mind whilst dealing with short-term challenges or difficulties.
2. Speed to market
You can’t be second when it comes to getting to market. Especially with the rate of technological development, the faster a business can produce its service or product, the better chance it has of success. Small and medium sized businesses often have to compete with established industries. One of the reasons small businesses often succeed is that they reach consumers first.
3. Financially savvy
Successful businesses know how to work within a budget. They also know how to manage cash flow. Cash flow is crucial to the success of any business and making sure there is cash in the bank plays a vital role. For instance, making sure you get paid on time can make all the difference between success and failure for a small business. Knowing your numbers and keeping on top of the finances is a key skill for any business owner.
4. Dedication
Business owners need to be leaders who are willing to work hard and stick to their goals. This leadership will inspire others to commit and to align with the company’s mission. It’s important to have everyone ‘on the same page’ – engaged and dedicated to the company’s goals. But it starts with the dedication of the business owner.
5. Perseverance
When times get tough, and the road to success offers huge challenges, business owners need to persevere to achieve success. There will be tough times. There will be times when the best option feels like ‘giving up and going home’! However successful businesses stick at it, they persevere.
6. Quick to Adapt
Successful businesses are comfortable with change. As an old boss of mine was fond of saying: “the only constant around here is change”! Good leaders know how to adapt, and to make good decisions often without a clear ‘roadmap’. As a result, they take advantage of opportunities that others might miss.
7. Knowing How to Attract Funding
Funding will at some point be vital for the growth and development of any successful business. A good business owner knows when the time is right to access funds. Whether it is equity funding from investors or debt finance through a bank, savvy business leaders know how to generate capital to give them the best possible chance of success.
8. Confidence
Confidence in themselves. Confidence in their businesses. Confidence in their ideas. This is not about arrogance, but rather an unwavering and unshakeable commitment and belief within the business owner about what they are doing and what they are trying to achieve. All leaders of successful businesses have it.
9. Efficient Time Managers
Great business leaders are good time managers. They have routine and they have processes in place, often automated, which means they can spend more of their time ‘working ON the business rather than IN it’.
10. Execution
Arguably this is the most important difference between a business that succeeds and one that doesn’t. Every business leader can have a great idea. Planning, strategy, goals, vision are all vital. But if you don’t put them into action, then quite simply, you don’t have a business. Knowing how to execute effectively sets successful businesses apart.
To YOUR business success!
