Defining a successful business?
A successful business can be defined as one that is able to meet its set objectives. It has a strong foundation built on thorough research of the product or service, the market and its ability to meet consumer demand. A successful business also has a well researched business plan with clear short term and long term goals to work towards, with a contingency plan in place.
What factors contribute to the success of a business?
Many factors contribute to business success. It is important to identify and be able to measure these factors for your business. One obvious factor used as a measure of business success includes business income – for example to generate sufficient income to cover outgoing costs and provide a wage for its employees. You may wish to plan for additional income to finance means to expand a business. Another factor could involve developing personal skills in specific aspects of business development. A measure could be the degree to which you are able to build a customer base and develop good relationships with customers to ensure repeat business. Depending on the nature of the business, the quality and/or functionality of the product or service being offered is a major consideration. One must research thoroughly the existing market offering similar products and services as your business. It is important that some aspect of what you offer is unique in comparison to similar products available in the larger market. That is your ‘competitive edge’. The success of your products and services must also be determined through adequate measures. You can measure these through monitoring increased sales, repeat business and through customer satisfaction surveys.
The importance of change to maintain the long term success of a business
Most businesses need to keep abreast of changes occurring in their industry. For example, changes in consumer demand, type and quality of products and services, introduction of new and contemporary products and services to meet the changing needs of an existing or new consumer market.
The rapid and exponential advancement of internet and communications technology is one example.
Most businesses have to embrace this advancement in technology in terms of methods of communication (to maintain efficient communication with suppliers and consumers), new methods in the storage and retrieval of data (for effective stock control, accounting practices etc) and technology that allows access to the vast amount of information available in every field of business.
Being aware of changes in your industry, and adopting the products, services, technologies and practices required to meet them is imperative for the long term success of any business in the 21st century.