In today’s business landscape, turning an idea into a Billion-Dollar Company is the ultimate goal of many young entrepreneurs. But, the data from the Bureau of Labor Statistics, say, 20% of small businesses fail in their first year, 30% of small businesses fail in their second year, and 50% of small businesses fail after five years in business. It is because a good idea alone is not enough for success.
For this reason, it is essential to analyze and assess all the aspects that can influence the success or failure of the newly created company. Although the factors of business success are multiple and depend on each company and business model still, there are some that we could consider universal.
So, here in this article, we have described some tips that will help you to strengthen your business in the market.
Differentiating yourself from the competitors
While setting up your startup, an essential question that every newbie entrepreneur should ask themselves is: “how can I differentiate myself from others?” If you want to survive in today’s competitive industry, you need to determine what sets you apart from the competition. Smart marketing or exciting technology alone won’t guarantee that your target customers will be blown away by what you offer; you have to offer real value or unique experience to your customers.
Richard Werbe, the founder of the StudyPool micro-tutoring service platform, explains his strategy for finding an innovative business idea, saying, “You have to pay attention to the current trends. Most people think they need to find a completely original idea, but you can take current popular trends and build on what you see, creating an improved service or product.” The market will determine the success of your business, and one of the ways to put the odds on your side is to offer an innovative product or service that will be well received by your customers.
The right team
The people behind your brand are another critical factor for business success. A business will have a much better chance of success if it is consists of a talented team: people capable of achieving their objectives and sharing the same vision as of yours. But, a great team is not just a matter of individual talent. People must work in a coordinated and effective way so that the overall performance of the company reaches its peak.
Setting up a business requires a lot of work during the start-up phase. And, long working hours are much more enjoyable when the whole team is ready to work hard to achieve their goals and hit milestones together.
Fluid Communication and Coordination, No silos!
Sometimes big companies such as General Motors also fail not because they have not invested money, or their products are not satisfying, it is because they lack communication. Their lack of interdepartmental coordination failed to generate revenue for the company.
When work teams do not communicate with each other in a large company, so-called information silos are created. The lack of communication between the two groups prevents innovation. For example, if the product department and the user support department do not communicate with each other, they will never be able to find solutions to the problems of the users.
It is for this reason that fluid communication and coordination is an essential success factor. And, this problem doesn’t only happen in large companies, but this same problem also exists in small teams who are dedicated to their job but do not share the work issues with their teams.
Consider customer feedback
The relationship between company and customer is one of the significant success factors of the startups. Companies that are successful today, the most important thing they do is they listen to their customers and collect testimonials. Big companies such as Southwest, Zappos, Amazon, or Apple are good examples of this strategy. It is essential to analyze and manage every customer’s feedback, no matter how unimportant or how negative it is, every complaint must be received positively with open ears. And, the focus must be on the customer, which means the product designer not only has to be good but also has to be customer-oriented. Moreover, you, being an entrepreneur, also have to roll out your red carpet for your first product testers, because they will contribute to the startup’s success. After all, they are the first brand ambassadors for the product!
And, last but not least, for a startup to be successful. It is essential to have the necessary capital not only to launch the startup but also to guarantee its viability during the first years.
So, now as you have seen the significant factors for a successful business, it’s time to analyze if your startup meets all of them. If so, you will be a little closer to success; if not, now you have the opportunity to get down to work to solve it.