What makes a successful business?

Successful businesses are built upon three key components: the ability to be flexible (researching the marketplace to ensure the product or service continues to satisfy customers), the ability to achieve high levels of customer retention and the ability to employ the best people for the job.

In today’s economic climate, businesses have two options: sticking to their guns and believing in the value of their product to achieve success or giving into fear and remaining static.

Companies who constantly complain about being unable to get the appropriate staff and consider the competition to be stronger, face the danger of becoming stuck in a rut. Many become trapped in the mindset of reducing prices to keep hold of the customers they already have and consistently try and customise products to retain them.

Successful businesses, however, have already researched the market and have done their homework. They know exactly the merits of their product and stick with it. Many actually raise prices because they have already established what their customers like.

Customers want to buy ‘the experience’ and they are prepared to pay the price. The challenge for the business is to keep moving forward and delighting their customers to retain their loyalty.

Contrary to popular belief, businesses which are the first in the marketplace with their particular service or product are riskier ventures. The most successful businesses copy what everyone else is doing because it’s a tried and tested model.

Businesses which are second or third to arrive in that particular sector are usually more successful.

Are businesses successful because of the people they employ or the systems they have in place?

Many entrepreneurs believe that people are the key to success. However, the people you think are the best people for the job might not be. Long-serving employees are very loyal but can be very resistant to change and like the thought of a comfortable working environment.

They are not always the best option when it comes to driving your business forward and gaining that ‘edge’.

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