What defines success in business?
Every entrepreneur goes into business with the highest hopes of success. However, identifying what “success” is can be very personal to you depending on your personal goals as a business owner. Does success create generational wealth? Is it about building, scaling, and then selling your business to the highest bidder? Is it to create a franchise of your business that will generate passive income for a long time?
How to define what success means for your business
For small business owners at any stage of entrepreneurship, defining what success means for your business starts with segmenting where you are and where you want to go. Besides, it also helps to identify the timeframe in which you think your business can achieve such success as a benchmark.
Here are two key areas to identify the success of your business:
Funding: Receiving grants or venture capital (or other investments) can be a great way to gauge how others see your business’s potential in a particular market. These forms of financing require you to present what you created and why, allowing investors to help you identify that you are indeed solving a problem that needs to be solved. However, lack of funding does not always mean that what you are building or have built is not needed and may simply require proving your concept through initial sales and users. Nav offers great options for learning how to tap into securing much-needed funding.
Growth: Are you ready to hire your first employee? Do you have so many products that it’s time to have a warehouse? Either way, growth is a major sign that your business is doing extremely well. Bringing in W2 employees or creating variations of a product can be a telltale sign that your business is in good shape.
If you are new to building a business, you can compare the results of competing businesses in your industry and see how successful they have been. By using similar templates and adapting them to your specific business, it will be a little easier to get funding and grow. But, if you’ve been in business for a few years, make comparisons to what your business looked like 5 or 10 years ago to help you see the true trajectory of your business success.
Set and achieve goals
Successful businesses are created by successful people. It’s important to create goals that complement your work-life balance and support your personal success and growth.
- Write it down and make it clear. A professor of psychology, Dr. Gail Matthews, conducted a study which revealed that 70% of business owners who wrote down and shared their goals actually succeeded in achieving them. Identify your short term (3, 6 or 12 months) and long term (5, 10 or 20 years) goals. Break down each larger goal into achievable tasks that help you move toward that larger goal. If you feel like it’s too much, consider prioritizing based on your business goals. You may also consider outsourcing tasks to contractors when possible.
- Study. Looking at other businesses in your niche and how they’ve built their startup is important to understanding how to scale your new business and gaining the know-how needed to build successful businesses. Every business is unique, so use your results to help inform – but not replicate – certain strategies for your business.
- Run. The concept that “hard work pays off” is not just a saying, but a mindset. As Gary Ve said“It’s about running while you’re awake… It doesn’t matter if you wake up at 4am or 9am. Use your time efficiently!
The importance of resilience and adaptability
The pandemic has taught anyone with a business or planning to start a business that it is imperative to be resilient and learn to adapt. The past two years have thrown the biggest curve balls in a way that has inspired business owners to make immediate and incremental changes for the betterment of their businesses. Businesses always have ebbs and flows that can be predicted and others that simply cannot. Your ability to make a tough business decision with the necessary changes and adjustments can dictate your success as a business owner.
Adaptability in business means harnessing the ability to make wise and necessary adjustments when challenges arise. Can you take a pay cut? Do you have the courage to let go of your employees? Are you ready to ditch your brick and mortar and focus strictly online? Some of these scenarios mentioned are real life scenarios that entrepreneurs have to decide at some point in their business which could be to their advantage or detriment.
Resilience in business means planning ahead for future adjustments. Consider effective ways to be proactive – what did you learn from this experience so that if it happens again, you can bounce back and recover even faster? Maybe it’s having a lifeline like a business line of credit or being more conservative with your inventory. Whatever the resource, consider a contingency plan that reflects both your adaptability and your resilience.
The keys to business success
When you have your own business, having a concise idea of what makes your business successful is essential. Creating benchmarks, based solely on your business plan and model, is an effective strategy to put in place the keys necessary for its success. Here are some keys to optimizing the success of your business:
- Research. You need to know your business and your industry inside out. This includes direct competitors and how your business better serves the market in comparison.
- Create a business plan. Having a detailed business plan will help you secure investments, see areas where you need help, potential growth opportunities, and plan the future of your business.
- To serve a need. Most businesses fail because they are not created to meet the needs of the consumer. Make sure people need your product or service.
- Hire an accountant/accountant. Keeping your financial records in order is vital to your business. An accountant who has bookkeeping skills can help you pay your quarterly taxes and keep your overhead costs low.
- Know what you don’t know. Being a successful business owner requires mentors, outsourced help in areas you are unfamiliar with, and an active participant who listens while delegating tasks.
- Be good with people. Word of mouth travels almost as fast as the speed of light, so it’s essential that you’re good for your consumers, providing a great customer service experience, and good for the people you employ to work on behalf of. your company.
How Nav Helps Small Businesses Succeed
Nav’s primary goal is to help small businesses achieve maximum success. Nav offers resources such as:
Nav provides both online resources and a mobile app that connects to any type of business. By using resources like the app and blog, business owners can use these real-world resources to build, scale, and sustain a profitable business. The bottom line is that every boss and company is different, but together with the tools Nav provides its users, it will make the journey much more bearable while giving you information you can understand.
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