7 Factors That Help a Business Thrive
Numerous online and offline publications cover the steps necessary to start a business, but that’s the easy part. All it takes is an idea, a little capital, and a filing at your local tax office. The complexity depends on the type of business and its goals, but getting a business off the ground is fairly easy.
By contrast, creating a business that thrives requires significantly more effort. It requires more than just funding — entrepreneurs must find exactly what their customers want and need. Here are the top factors for what makes a business thrive.
Existence of a Business Plan
Some people say that you don’t need a business plan. They argue that most businesses develop organically in response to market conditions and that the more time you spend planning, the more time you waste not earning money. However, a business plan is not meant to outline every step your company will take.
Chairman of Diversified Agency Services Thomas Harrison explains, “A business plan is a genetic, molecular definition of my business. It crystallizes why I’m in business; it shouts what I do for the world, for consumers, for my customers. It dissects my business DNA and how it is unique and it clarifies why my customers should do business with me.”
Clarity of a Business Plan
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In their most basic form, business plans clarify how you intend to approach the industry. It explains the opportunities you see in the market and describes how your business meets them. Having a business plan is the difference between saying, “We’re going to climb this mountain”, and “We’re going to climb this mountain by ascending the southern face. The trail is less steep and the weather should be more comfortable. We will bring these supplies and follow this route.” Develop a plan that makes your business intention clear.
Potential for High Profits
This sounds like a simple concept, but the idea is much more complex. The one trait that all successful businesses share, no matter what their industry or what product they sell, is that they make maximizing profitability a priority. They undertake customer service efforts, market research, product development, capital planning, and back office processes with the goal to maximize current and potential profits while reducing the expenses required to operate the business, stock inventory, and pay employees.
In-depth Knowledge of Expenses
Owners of thriving businesses must know where and how they spend their money. They have to keep track of costs accurately and know how much of each expense should be applied toward each project or product within the company. Moreover, successful companies keep those numbers available and use them to make strategic decisions. A good accounting service like Sage cloud accounting software helps business owners keep track of their income and expenses.
Plan for the Future
Thriving businesses make the effort to ensure every area of operation remains profitable. This means reinvesting in the company, searching out new markets, and maintaining appropriate security and customer service standards. The most successful businesses also make employee satisfaction a priority. If you aren’t sure whether or not your employees are challenged and engaged, consider software programs like Bridge that surveys and tracks employees with regard to satisfaction.
Potential to Make a Difference
The most successful businesses also make a difference in the lives of their customers. They help people lead more comfortable, safer, happier, and more productive lives. These thriving business do something that stands out, something that helps the end-user, and they constantly evolve those efforts based on customer feedback.
Thriving businesses have another thing in common — competence. Excellence in performance and excellence in your field are critical to being a successful entrepreneur. No one wants a mediocre product or service, so work at being in the top 10 percent of your field or hire someone who is.
Building a thriving business takes a continued effort, a little know-how, and a good bit of research. Try to be the best and work hard at making a difference in your customers’ lives. If you can do that, you can create sustainable success.