This question is perhaps less simple than it seems at first glance. You might be inclined to shout ‘profit’, and if you are a shareholder, that may be all you care about. But for business owners and entrepreneurs, the meaning of success doesn't have to be measured in dollars at all.
Money is a consequence of business success, not its cause. Business success certainly depends on a reasonable amount of investment, but also on talent, strategy, hard work, and often a bit of luck.
In this article, we will be taking a closer look at what exactly “business success” means, what makes a business successful, and how an organization might realize that success.
What Is Business Success?
Whereas the meaning of business success will vary from company to company, the most successful companies incline to have things in common.
Many tech giants measure business success not only by the money they make however by the user experience that they deliver… which, if great, will lead to improved profit and market share.
Hedge funds and investment bankers see success as making their clients’ money, more willingly than themselves because the former inevitably leads to the latter.
With the understanding that people are their most valuable resource, many progressive companies are beginning to measure success in terms of employee satisfaction. Satisfied employees build a business’s reputation as an employer of choice, helping them to attract the best and brightest minds, and in turn, increases the likelihood of future success.
What makes a company successful? Your definition should not be based on profit or increased market share – it should instead encapsulate the things that lead to profit and increased market share. Take a step back and identify who makes the difference in your business and select them as indicators of success.
10 Factors That Contribute to Business Success
It’s one thing to describe what makes a business successful. It’s another thing to realize that success. As a business owner or entrepreneur, you need to understand the factors that will contribute to the continued health and wealth of your organization.
Let’s take a look at 8 of the most significant
#1: Set A Business Goal
What is the main objective of your business – the overall goal you are working towards? All businesses should know, in a quantifiable way, where they want to be in five or ten years. It might be:
- You want to be the market leader in your perpendicular
- You want to offer your products or services all over the country or the world
- You want to expand your team to a certain number
- You want to run a completely sustainable business with a small carbon footprint
- Once you have clearly defined your mission, you can drive your business around it.
#2: Understand Your Customer Needs
Successful businesses meet the requirements and want of customers. They identify a pain point or a gap in the market, do deep research into what people are looking for, and offer a solution that works for them. While it's true that some companies have successfully created demand – fashion labels, tech companies, supercar manufacturers – they’re the exception, not the rule.
Such a customer-centric approach to development can also lead to a more customer-centric approach to sales and service. In an increasingly digital and automated world, the human touch becomes the real difference.
#3: Research Your Competition
Some markets are more competitive than others. If you are trying to enter a saturated market, you will soon find yourself racing to the bottom to secure business. It’s difficult to grow when you are fighting for every bite of food. Again, work to identify demand before you hit the road.
But no matter how advanced or left-of-center your business is, you will always have some form of competition. You must conduct competitor research to avoid falling behind or getting caught out. You always want to be proactive in business, not reactive.
#4: Attract and Retain the Right Talent
People are a company’s most vital asset – cliches are usually cliches for a reason. Attracting and recollecting the correct people can have a more noteworthy effect on your business accomplishment than maybe any other activity.
Do your best to get the best people possible initially, and at that point take a structured approach to treat these first employees well. This will begin to develop your employer brand – your status as a place to work. If you paint a positive picture, you will find it far easier to attract & retain great people in the future.
#5: Be Transparent with Your Team
Gone are the days of despotic, dictatorial leadership, where bosses barked orders without clarification. The most successful modern businesses work to build a culture of faith by being flawlessly transparent:
- Obviously, outline your values & live by them
- Consult your team when you need to make significant decisions
- Follow through on promises.
- Own up to mistakes and promise to do better
#6: Become A Decisive Leader
But even in the most advice-giving and transparent of company cultures, leaders will still need to make tough decisions when essential. There are often when business success is dependent on prompt and confident decision-making, often without the luxury of all the information you might want or need.
A flawed decision early is usually better than a faultless decision that comes too late. Business success is about user experience as well as feeling in these moments and obligating to your call.
#7: Keep Business Documents
Record everything. It’s been said before that data is the oil of the 21st century&it is true. Between internal company as well as external market information, the answers to almost all of your business questions will be hidden among the zeroes and ones. And you no longer need to be a data scientist to make the most of this resource – smart tools such as Square Analytics allow you to gain insights with just a click.
Documenting everything also allows your business to preserve ideas, build credibility and resolve disputes.
#8: Build Strong Business Relationships
Your professional network can be a valuable thing. The relationships you build with mentors thought leaders, suppliers, customers as well as other business players could be a source of business, talent, thoughts, and advice. Make yourself known in your industry: be active on LinkedIn and attend in-person events.
What is business success? At the end of the day, your definition can be whatever you want it to be. Realize that success is then a matter of breaking your purpose down into actionable parts.