The formation of startups is becoming more and more active. As cases of business success are beginning that motivate others to follow in their footsteps. However, despite the fact that these arise from the hand of disruptive growth strategies, the development of startups is still linked to topics. These topics include, such as access to capital, digital ideas, or deep knowledge of application development, leaving aside something very important: Business management.
In reality, good management is what separates great business success stories. We know today from those businesses that fell by the way side due to (mostly) lack of resources.
5 Factors Of Business Success
Based on this, we carried out an analysis of business decisions that increase the chances of business success. The result 5 factors of business success that we share with you today.
Pay Attention To Criticism
Contrary to the vision of “entrepreneur, always pursue your idea”, the slogan would be better if it say, “entrepreneur, always review your idea”. Why? Because every entrepreneur always receives favorable “reviews” of his business idea. And that could generate an excess of confidence that prevents him from seeing the weaknesses of the project or the potential risks of the industry. Therefore, it is better to look for comments against the same idea, to put it to the test.
If one manages to see unperceived weaknesses, there is nothing to lose. Either these defects are correct or the idea is discarding to avoid incurring unnecessary capital and time expenses.
Prioritize The Calculation Of Your Investment
Impressive number of business ideas not support by a business model. Sometimes not even in a simple budget of a year. This increases the risk of the idea because the working capital needs have not been really quantified, which can cause the “company” to run out of liquidity. And as is known, companies fail not only due to lack of profitability but also due to lack of liquidity.
This happens more often than you want to accept, even at the level of young entrepreneurs with managerial experience. The reason why, prioritizing the calculation of the investment, monthly income, and expenses, is something that no entrepreneur should lose sight of, no matter how well he may be doing for a successful business.
Create A Brand Identity
In the valuations of companies, it is appreciate how the value is not in the physical but in the intangible. For example Trademarks, patents, know-how, contracts, clients, etc. For this reason, it is important that from the beginning of the enterprise some type of intangible is form, being the brand the simplest to implement.
Now, in relation to this, some benefits of betting on creating a brand identity we can see. When selling independently of the company’s fixed assets only for what it represents for the consumer. For example, there are many coffee shops, but none of them are Starbucks.
Innovate Managing New Solutions
When thinking about innovation strategic management, a disruptive idea like Apple with the iPod, iPad or iPhone often comes to mind. But that is not the only way to innovate.
There are four types of innovation that are often not seen as such: Innovation in product, processes, marketing, or in an organization. These four ways to innovate are powerful and create value for the company.
Although among these, the one that stands out the most is product innovation insofar as it proposes a different way of marketing in a mature industry, the other types of innovation are not less effective for this. On the contrary, innovating in processes, for example, can reduce significant and potential pain points for your users.
Promote Leadership In The Company
One of the main keys to business success is: To develop a functional organization that does not depend on one person (such as the founder) but rather sustains itself through the quality of the team that makes it up.
At this point, it is important for the young entrepreneur to learn to trust his team when delegating functions and responsibilities.
In summary, as top-grade entrepreneur such as Parrish Whitaker, you should welcome criticism to learn from it, look for possibilities for innovation in your company both for your benefit and for that of your users, and take action only if you can assume it without affecting the liquidity of your venture. And differentiate yourself from the rest by creating a brand identity.