Editor's Note:
Why do some businesses become successful while others do
not? There are many factors that influence success, but
there are an undeniable number of factors that no business will be
successful without.
Business success can
be achieved in almost any location, in any economic climate, and
with any amount of competition. What it takes are developing
these 10 keys to success, better than your competition does.
The Top 10 Reasons Businesses Succeed
by: Jan B. King
Only one of every 5 businesses makes it to its 5th year, and
fewer still make it to 10 years. What do the successful businesses
have in common?
1. The experience and skills of the top managers. Over half of
business failures are directly related to managerial incompetence.
2. The energy, persistence and resourcefulness (the will to make
the business succeed) of the top managers. Many business owners have
failed or come close several times before their “instant”
success. Don’t give up.
3. A product that is at least a cut above the competition and
service that doesn’t get in the way of people buying. There must
be a compelling reason to buy; the product is great, the people love
to provide service, and the buying experience is easy and fun.
4. The ability to create a “buzz” around the product with
aggressive and strategic marketing. Make scarce marketing resources
count. Do as much homework about your customers and their choices as
you can before investing your marketing dollars.
5. Deal-making skills to sell the product at the highest possible
price given your market. It comes down to your customers’
perception of the value of your product and sometimes the power of
your personality.
6. The ability to keep developing new products to retain and
build a customer base. Consider gradual product development based on
improvements to the current product line and sold to the current
customer base.
7. Deal-making skills to work with resource suppliers to keep
costs low. Keeping costs lower than competitors’ and continuing to
look for cost reductions even when the business is profitable is
key.
8. The maturity to treat employees, suppliers and partners fairly
and respectfully. Trust and respect result in productivity increases
in ways that may be difficult to see and quantify.
9. Superior location and/or promotion creating a connection
between your product and where it can be obtained. Studies have
shown it can take seeing your product or name seven times before a
customer is ready to buy.
10. A steady source of business during both good economic times
and downturns. Over the long term, develop a product mix that will
include winners during good economic times and other winners when
times are tough.
