The burning question that is not as simple as it may seem. Contrary to popular belief, money is the result of business success, not the cause. For business owners and entrepreneurs, the definition of success is usually not measured in dollars at all.
Business success is built on:
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Investment
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Talent
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Strategy
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Work ethic
And, if you dare to say it, maybe even a bit of “luck”.
We will look at what ‘business success’ actually is, and how a business can build that success.
What is business success?
The meaning of success in business will vary depending on the company and industry. However, the most successful companies tend to have some things in common. To name a few:
- Strong business relationships
- Discipline
- Cohesive teams
- Innovation
- Adaptability
- Customer-centricity
Now more than ever, any forward-thinking companies measure success based on the happiness of their employees. Contented employees build a business’s reputation as a preferred employer, helping them to attract the best and brightest minds, and increasing the likelihood of future success.
So, what makes a company successful? Factors that lead your business to making profit. Step back and identify the things that make a difference in your business, and choose those as your key for success.
5 Important factors that contribute to business success
Defining business success is just the beginning. The next step is building that success. As a business owner, you have to understand the factors that will contribute to the ongoing strength of your organisation.
Here are 5 that we believe are most important:
1. Choose your customers
We are so grateful to have such amazing clients, but this is not by accident. In the past 2 years we have resigned some very large clients as the “just didn’t fit”. Choosing the right clients and, when necessary, resigning from relationships with clients who may not be a good fit is a strategic and important aspect of business.
Bad clients can be resource intensive. They may require more time, attention, and effort without providing proportional value. Resigning from such clients allows you to allocate resources more efficiently. If the client’s values, goals, or expectations are fundamentally misaligned with your business, it can lead to conflicts and dissatisfaction. It’s better to part ways amicably to maintain your business integrity.
Clients who consistently have issues with payment can negatively impact your cash flow. Resigning from clients who don’t meet their financial obligations is a prudent business decision.
If there are significant disparities in expectations regarding deliverables, timelines, or service levels, it may lead to frustration on both sides. Resigning from the relationship can prevent ongoing dissatisfaction.
Some clients may create a toxic or hostile working environment. If the relationship is detrimental to the well-being of your team or the overall business culture, it’s wise to part ways. If a client’s requests or actions raise ethical concerns, it’s crucial to prioritise your business ethics and consider resigning to maintain your integrity.
Good clients understand and respect the value of the products or services you provide. This mutual respect forms the basis for a healthy and long-lasting business relationship. Good clients view the relationship as a partnership rather than a transaction. They are open to collaboration, feedback, and working together to achieve shared goals. Good clients honour their financial commitments, ensuring a steady and reliable income stream for your business.
Effective communication is a hallmark of a good client. Clear expectations and open lines of communication contribute to a positive working relationship. Clients who appreciate the value of your products or services are more likely to be satisfied and become long-term partners.
2. Set goals
Think about the main objective of your business. What is the ultimate goal you’re working towards? Every business should have a 5 year plan. Some factors to consider include:
- Do you want to be the market leader in your industry?
- Do you want to expand your products or services nationally or internationally?
- Do you want to grow your team?
Once your business goals are outlined, you can then work towards running your business to achieving these goals.
3. Put the customer first and understand their needs
A successful business is customer-centric and knows the needs, wants and pain-points of their customers. They identify pain points early on, conduct in-depth research on what people are looking for, and offer them the solution.
Having a customer-centric approach can lead to more sales and a better customer experience. In a world that is increasingly more automated each day, it is quickly becoming a point of difference for a business to include human interaction as part of the sales process.
4. Build strong business relationships
Professional networks are extremely valuable. Building relationships with the right people can lead to new business, new ideas, new talent and new advice. Don’t underestimate the effect social media has in terms of getting your name and brand out there for thousands of people to see. So, take the time to utilise platforms like LinkedIn as much as possible.
5. Have resilience
We have said it before and we will say it again – on the pathway to success, setbacks are inevitable.
5 Ways to Move Forward After a Setback (Infographic) (healthybusinessbuilder.com.au)
There are always going to be hurdles that need to be overcome. Remember that failure isn’t shaped by these events, but rather by how you respond to them and bounce back. Some notable examples of companies that have experienced huge setbacks and made strong comebacks include:
- Ford Motor Company: Suffered some failed automotive endeavours early on, including Detroit Automobile Co. which was started in 1899, but was unsuccessful due to selling cars of poor quality and high prices. They were able to turn this around by developing better designs and eventually a demo car called the “Ford 999”. Following this, they released the Model T, which was a good quality build and affordably priced. Fast forward and the Ford brand is where it is today.
- The Walt Disney Co. (now Disney Corp.): This household name overcame various major setbacks in the late 1920s and 1930s, including losing rights to some of their most popular characters. The company in fact had a debt of four-million dollars in the early 1930’s. However, with the little money they had, Disney released “Snow White and the Seven Dwarfs” in 1938. The blockbuster movie pulled the company out of bankruptcy and helped it to move forward and continue producing the classics we know and love.
Resilience is an abstract factor, but a must-have for a business owner or entrepreneur if they want to succeed. Look at setbacks as an opportunity to learn. Your failures teach you more than your triumphs.
You can define business success in your own way, but, whatever your definition may be, knowing how to become a success is about breaking down your definition into achievable goals.
Looking for ways to make your business more successful? Contact the HBB Group today to discuss a tailored approach to your needs.
Call 1300 833 574 or email info@hbbausgroup.com.au
