Ok, so we all need a successful business and we all try to get that bit of magic that puts us ahead. But, are there things that you can point out that will pin down success definitively? Many people claim to have the answers and some even claim uniqueness in their abilities. For example, they will assume that all you need is a well-organized “sales funnel” and all will be well. Yet, some businesses successful at sales do not have good receivables management. Or, some overreach to sell and overstretch the firm’s resources leading to debilitating cash flow situations.Well, you might figure by now that it is all about balance…actually, common sense and balance. There are some things that do help. But one of the greatest attribute is to be able to read situations and respond, because the market, the competition, and the location and so on, all play their parts. Here are a few things to consider, with commonsense.
1) A solid, committed team is very valuable, especially if members are like-minded and really turned on by the vision. Members should understand their roles but in the early stages there might not be opportunity for focusing only on one thing because the building stage requires attention to many areas, especially cost control.
2) The entrepreneur and especially, the leader, must be positive, persistent and yet patient at the same time.
3) Point (1) mentions a vision but this cannot be overemphasized. There must be a goal and yet there must be flexibility to adapt to the realities when the market dictates.
4) Tied in with the vision should be a model of how you will actually make money from the venture. Two similar businesses can actually make money from different models. A typical example is selling to passers-by versus selling online.
5) Cash flow is, perhaps, the most important universal point. If you lose sight of the need for cash, its amount and timing, it can be goodbye to any chance of success. A watchful eye on your cash needs and minimizing expenditure is so critical that it should be the first thing taught in small business training. Many persons bring their personalities of being a ‘free spirit” to the business and soon find that they are not able to get past the first few months.
6) Sales model and proficiency. Similar to the business model is the actual way sales are done each and every day, as well as the skills and personalities to do it. Some businesses require a nice pleasant personality at a counter, for example, while others require aggressive professional sales people searching out opportunities.
7) Finally, imagination and a power of analysis are important. You have to dream that you can be different and successful in this crowded arena and it is a well developed power of analysis that allows you to look at the day to day realities and work things to your favor.
Are there more? Most likely but I suspect that every successful business can identify with these.
