10 Factors Crucial for the Success of a Modern Business
The topmost query that clouds the mind of present generation of entrepreneurs is how to achieve success in modern business. Although there are tons of guides available online, which try to address this problem, yet most business owners still struggle chasing it day and night. It does not matter, if you are running a business for five weeks or five decades, running a successful business requires constant innovation. This is why Microsoft and Nokia, pioneers of technology at one time, struggle today to exist in market.
This post circles around certain principles that will give business owners a clear picture of how they can attain success in modern business. Let’s begin with those commandments:
1. Find a need for a particular business in market
You think you have a great business idea and it can revolutionize the corresponding industry. However, what you think might not always come true. Most of the startups/ businesses close their operations within the first 18 months of existence. This is due to the lack of market research before initiation. The fact remains that if no one wants your product, then your business will never be able to succeed.
The Newton MessagePad is one such example, which failed, as it was not able to capture user’s interest. Introduced in the early 1990s, it was perhaps the first tablet marketed to the consumer. However, there was no market for such products at that time. This is why it is vital that you first find a need for a particular business in the market and perform a risk assessment.
2. Just focus on the things you want to achieve
Even after doing proper market research, and introducing a service/product that would be of great use to consumers, several businesses fail to take off well.
Everybody is aware of the success of iPods and iTunes. The time when Apple was making a buzz in the music industry, Microsoft also tried to put forth its product Zune. However, it failed miserably and was just declared DOA (dead on arrival). The main reason for the failure was the lack of focus on things that Microsoft wanted it to achieve. Although it was a great product yet it did not have the backing of easy-to-use music store like iTunes. Microsoft just captured the market wave and introduced a product, without thinking about what it wanted to achieve with it.
3. If you are late to the party, you will have to catch up
The current business dynamics have become immensely competitive and it is all about becoming first to capture the bulk of the market share. However, sometimes just being the first does not mean success. It is about a better product, rather the first product.
Many termed that Facebook will soon become obsolete, when the social network ignored the future prospect of mobile applications. Nevertheless, after it took cognizance of this issue, it built some of the most user engaging mobile applications and is currently at the helm of social connectivity. Therefore, it is never too late to jump on the bandwagon, but more you wait, harder you will have to work to catch up with the competition.
4. Bigger the problem, larger the reward
There is a general saying that big risks involve big rewards. Big successful businesses are not created on their own. You have to take calculated risk and solve larger problems clouding the society. As discussed in the first point, you need to first find the need of a particular business in the market. However, if you want bigger rewards, you need to solve bigger problems.
When Elon Musk started SpaceX, he took cognizance of the huge problems clouding space exploration. Now after successfully docking with the international space station and becoming the first private company to do so, he has turned the fortunes of the company. Therefore solving big problems should be on the top of your list. It holds more chances of bringing larger rewards.
5. Focus more on customer service than acquisition
Finding new customers is the penultimate task for any business. One of the essential aspects of the success of any business is the consumers. However, running a successful business is not always just about acquiring new customers. Businesses spend millions on marketing their product but tend to forget to upgrade their customer service. Marketing can somehow bring new customers, and be profitable in the near future, but in the long term, these strategies do not work.
Businesses need to focus more on customer retention than customer acquisition for sustaining a brand in the long-term. Amazon is one such company that has built its brand on the back of customer service. There are thousands of stories of how Amazon has gone the extra mile to keep its customers happy. This is why the business has gone from strength to strength, and come across as a strong business model.
6. Structure your business to maximize profits
With cut-throat competition in place, it is always advised to keep resource burn at minimal. Most of the startups these days fail to live up to the hype created by them, as they are unable to structure their business to maximize profits. The fact remains that unless you have a profitable revenue stream, you would not be able to continue with your operations.
Food Tech business is a clear example of this mismanagement. Many have been forced to shut their shops, as the profits margins are low in this sector, and their business relied solely on venture funding. The best practice that aspect is to structure your business model and incorporate key website features in your online food tech platform to enhance efficiency and increase profits.
7. Remember and learn from your mistakes
We all know the saying, “To err is human”. Nobody is perfect and every business has to face some setbacks. This is where successful business owners are created. It is always the best policy to learn from your mistakes. Good judgment, which is paramount for any business, will only develop if you truly take cognizance of the mistakes made in the past and do not repeat them.
Walt Disney is a perfect example who acknowledged his mistakes and went on to form one of the most profitable companies.
8. It is never too late to reinvent
Not all businesses and entrepreneurs achieve success and nothing is for eternity. If your business is going through a slump and things are not working out, it is always advisable to reinvent yourself.
IBM is considered to be the poster boy when it comes to reinventing business. During the 1980s, IBM was a behemoth of the computing world, building PCs. Gradually with other players entering the market; IBM had to face many losses. The only option it had was to either innovate or die. It went for the former. By 2010, it reinvented itself as an IT service provider, offering computing services to businesses. In the next couple of years, it became the top seller of enterprise server solutions in the world.
9. Plan properly before making radical changes
Proper planning is the key to success for any business and it becomes highly imperative when it comes to making radical changes. As discussed in the point above, businesses should always be open to reinventing themselves. However, proper planning, risk assessment, and future implications must be analyzed beforehand. Moreover, you must never deviate from your core business.
10. Stay aware of new technologies to have an edge over competition
The Holy Grail for every successful business is to stay ahead of the competition by incorporating best practices and latest technologies to streamline legacy processes. Giants like Uber and AirBnB have made a name for themselves, and stayed at the top, just because they leveraged upon new technologies and kept on evolving their business processes repeatedly. For example, ecommerce websites are a rage these days and there are some ecommerce platforms better known as turnkey solutions that make it easy for entrepreneurs to start a new ecommerce business.
The fact remains that modern business moves at an extremely fast pace. There is very little room for error, and if you do not plan your moves properly, you will end up as a case study for failed businesses. All the above points are equally important and act as building blocks of a successful business. Most of the successful businesses are already abiding by these points. Now it is all up to you, to make sure that your business does not lag behind.
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