What does it take to make a business successful? How can someone who has never run a business before start, build, and run a successful business? This is a really good question, especially since most businesses still fail in the first five years.
I think that there are some essentials of business success that must be considered by every entrepreneur and new business start-up before they turn on the first light, make the first business contact, or open the door for the very first time.
1. You must develop an entrepreneurial mindset. With this mindset, you will learn to embrace the concept of delayed gratification. You will have thought through the incredibly important question, “How long can I run this business before making a profit?” You will understand that starting a business requires a higher than normal financial risk tolerance.
2. You must understand how money works. If you don’t really understand the difference between an asset and a liability your chances for success diminish drastically. Managing money correctly in the early stages of your business sets the standard for success in the long run.
3. You must understand the basics of marketing your business. With all the options today both online and offline, you need to know what will bring you new customers, what will keep existing customers, and what will not! Too many new businesses collapse under the weight of a trial and error marketing plan.
4. You must understand what it means to be a leader in your chosen field. Every industry is filled with people “just like everyone else.” What you must do to be successful is to set yourself apart as someone with a unique value as a thought leader in your industry.
5. You must continue to grow as a person. Everyone enters the world of businesses with personal strengths and weaknesses. Working to improve your talents and skill set will allow you to continue to improve the quality of your business for your current clients as well as for new clients that will be added over time.
With an understanding of these essentials of business success, you will give yourself a more than fighting chance to be one of those companies who survive where others will fail.
What other essentials do you think are important for new business start-ups to know and understand?