Why do businesses succeed and fail?
Building a business is hard. An endless gauntlet of mistakes waiting to be made, some seemingly so obvious… but always in hindsight.
So why do businesses succeed and fail? The list is endless but here is the selection I bring to mind when I need a reminder.
1) They are relevant
If no-one needs your product or service, your business will not succeed. I know it seems obvious but keep checking that every element of your business is relevant to your audience is key to your business succeeding.
2) They have systems and flows
In a small business, everything matters. By having systems and flows (ie organisation and structure) the business can flow more easily with out the constant attention of the founder, allowing them to focus on growth and scalability. When businesses have no systems and flows, tasks fall between the cracks, customers and clients become unhappy and small bumps turn into huge mountains.
3) They take their time
I know all new businesses want rapid growth, and yes this is fundamental to sustainability. With no growth, there is no further revenue. With no revenue there is no hard cash. With no cash, there is nothing. However, growing a business takes time and patience. And hard work. There’s no short cuts.
4) They can take hard knocks
Starting and growing a business will involve plenty of mistakes made, some of them seemingly stupid. Failure awaits you around every bend. However, it’s how you and your team respond to failure that will distinguish you from the rest. Being flexible and resilient in your approach is key – your product/ service has no demand, change it. Your marketing strategy isn’t engaging, change it. You get the picture. Be flexible, be realistic, be resilient.
5) They don’t give up
The final and finite reason why businesses succeed is because the founder never gives up. As soon as they do, that’s the end. As simple as that.
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