With so much information available to us, there’s no reason we can’t be well informed about business building. A large percent of new businesses fail because the entrepreneurs are not aware of the skills they need to keep the enterprise afloat.
Most entrepreneurs have excellent skills in their profession and have enjoyed various levels of success. They have managed to schedule, prepare and provide their service or product in a way that has convinced them that starting a full fledged business is a great idea. However, the SBA reports that more than two-thirds of the 29 million startups fail each year. Something is seriously missing. Rather than looking at why these businesses fail, this article explores the reasons businesses succeed.
Jan B. King in “Top 10 Reasons Businesses Succeed” reported ten eye-opening reasons some businesses avoid becoming a fail statistic.
The first and most fundamental reason is ”The experience and skills of the top managers [owners] . Over half of business failures are directly related to managerial incompetence.”
We see the use of the term ‘management’, in thousands of articles and books. It actually means many different things according to whoever is using it. I like to refer to scientific or researched based findings for a definition of management. Frederick W. Taylor, in his works on scientific management offers the best definition of management as a science or set of skills.
“Scientific management [set of skills ] is a theory of management that analyzes and synthesizes workflows. Its main objective is improving economic efficiency, especially labor productivity.” Wikipedia
Considering Taylor’s conclusions, we can describe management as the responsibility for designing and executing a strategy with clear objectives, targets and deadlines. You also have the responsibility to design methods (systems), set standards, guide the performance of workers, and measure results. In addition, management includes hiring, training and promoting workers. You will train and coach the appropriate employees required to successfully meet the objectives as described in the strategy. In other words, management is the organization and coordination of the activities of a business in order to achieve defined objectives. You will apply change management skills as you find the need for making the various types of changes to your established strategy and systems. People skills, such as communication and conflict management skills fall under the umbrella of scientific or skill based management. Management skills have been the focus of years of management research. Today we have time-tested and universal management skills available to managers because of this rigorous research. Of course, there will always be improvements in the discipline but basic business management skills will stay relatively the same. The best managers will continuously learn and improve their management skills.
A second reason new businesses succeed according to King is “The energy, persistence and resourcefulness (the will to make the business succeed) of the top managers.
Many business owners have failed or come close several times before their “instant” success. Don’t give up.”
This highlights the reason persistence and determination show up in all the results of business success studies.
A Purpose or Mission that you are passionate about will bring out the persistence and determination you need to get through the many problems you face as you grow your new business.
Md.Ashiqur Ran reported that “Albert Ellis was an American psychologist. Ellis said, ‘the art of love is largely the art of persistence’. Really, if you want to build something firstly you need to love it then love to do it again and again and it is the power of persistence. Persistence helps to conquer something invincible. ….The habit of persistence is the habit of success. Failure reminds us to be more persistent! It’s nothing.”
A third reason businesses succeed according to King: “A product that is at least a cut above the competition and service that doesn’t get in the way of people buying. There must be a compelling reason to buy; the product is great, the people love to provide service, and the buying experience is easy and fun.”
This reason implies the business has great Values or principles, excellent operating Systems, talented workers and customer empathy. The business enjoys values such as innovation, excellence, integrity, fun, and customer rapport. Successful businesses have also designed their Systems or operations and documented them to enable consistent application by all workers.
The workers share a belief in the Values and understand the significance of the customers
Probably the most important difference is the successful businesses have chose a product or service that is different or better than what has been available to their customers. They have found an innovative or creative way to be different and they continue to create and innovate.
King’s fourth reason businesses succeed: “The ability to create a “buzz” around the product with aggressive and strategic marketing. Make scarce marketing resources count. Do as much homework about your customers and their choices as you can before investing your marketing dollars.” There are many ways to market your business on a shoestring. The internet offers tremendous opportunities.Social media through blog posts is extremely popular and beneficial as well as you tube and podcasts. Many marketing tools are possible with a little research. Giving something away , personal appearances offering coupons and networking are just a few of the many ways you can market your new business. Uses as many as you can.
These are four primary reasons businesses succeed. If you have mastered these four steps, the rest is fairly easy. See King’s article for the rest to avoid being in the “fail’ statistic.