TAX BASICS

7 Essential Factors For A Successful Business

Entrepreneurship is a dream for a lot of individuals across the globe. However, being an entrepreneur is not an easy task and there are various challenges that arise through the journey. Even though the startup environment has seen great progress over the years, there are still some failures. Therefore it is important that the essential factors for a successful business have been considered before launching. This allows you to create a better strategic plan and a course of action for your business.

Essential factors for a successful business

An Idea

 Every great organization of today was once considered impossible at a point in time. You don’t need to worry if people say you have a crazy idea. Instead, you must have a great idea that solves a problem or has some impact. Twenty years ago the smartphones of today was a distant reality, but now it is an inevitable part of our daily lives.

However, it is not necessary that everyone will have a revolutionary idea that will have a huge impact. Therefore, it is essential for a business to validate its core concept. Always try to keep your business unique, but whatever you do there might be companies that provide the same services as yours. In such situations, you must always try to improve what you can offer. Therefore, a customer-centric approach will give you great potential for growth. There are a few important questions you must be asking yourself which we will discuss further. These questions will help you in understanding the merits of your idea.

The mission is an essential factor for a successful business

Why are you doing this and what are you trying to achieve in the long run. Every business needs to have a vision for future growth and also a purpose for its functions. Social entrepreneurship and the attitude of millennials to such organizations make it even more important. Catchy mission statements tend to stay in your customer’s minds and ensure your stay in their mind. 

 A vision statement describes where the company aspired to be upon achieving its mission. In the vision statement, the company describes where the company wants a community, or the world, to be as a result of the company’s services. A great example of a vision statement is of Microsoft at its founding ” A computer on every desk and in every home.”

 A mission statement is an action-oriented vision statement that declares the purpose an organization serves to its audience. It is the path towards the ultimate vision of the company’s vision and it clarifies the what, who and why of a company.

 “To create a better everyday life for the many people” is the mission statement of Swedish furniture retailer giants IKEA. Another great example is Tesla founded by Elon Musk which states ” To accelerate the world’s transition to sustainable energy”. The mission of the social enterprise TOM shoes is another great example of the importance of a mission. Its mission is to improve lives through business. They donate $1 for every $3 they make and a lot of people bought into the mission of the organization. It allows everyone to be a part of something good for the society.

 What problem are you solving?

  All the great products or services are solving a problem that exists in the market for the consumers. If you are not solving any problem then people might not want your product or service because there is no need for your product. 

 If you have an upgrade to an existing problem and have a better plan of action then you might have a good idea as well. Having an idea is the base and then it’s how you implement.

 Who are you solving this problem for?

  This is actually the million-dollar question which you should ask yourself. You need to find out who will be your customers and how big is your target market. The bigger the target market the number of business prospects or the number of potential customers you have. If the target market increases then the possibilities are your competition would also increase. 

 You must have a clear idea regarding your target market, whether it is a large number or is it a particular niche that must be identified. Knowing who your ideal customer is and how you can find them is critical to starting a successful business.

 Competitors and the Services offered?

  You must always keep an eye on your competition and always try to stay ahead of your competition. Find the competition you are going to face and evaluate their services. Then you must evaluate your own services and check if your services are better than your competitors.

 A positive attitude is an essential factor for the success of a business

  Being an entrepreneur means you are going in for a roller coaster ride. You won’t have things working in your favor, and at times you might also feel it’s you against the world. But no matter what happens you must always ensure that you never lose your optimistic attitude. The belief in your idea and yourself is an essential factor for a successful business. However, this must not make you blind and you must accept the fact that there is always room for improvement.

 Can you make money?

  An obvious question which anyone should ask about their idea before commencing a business. A great idea need not be a great business idea, only if you can turn your idea into a profitable venture you must proceed with your idea. In the initial phases, it would be difficult to be profitable or get desired results but in the long run, you must see the business as a profitable venture.

 Having a great idea or you being a great individual does not guarantee you success in entrepreneurship. Establishing a successful business is a combination of many factors which include the idea, implementation, marketing, operations, and many others. We had discussed the key essential factors for a successful business. However, this is not enough, think ahead, think of your personal circumstances as you are the only one who can understand. Everything is a learning process and with everything in your life, it would help you to be a better individual.  

“Success is not final; failure is not fatal: It is the courage to continue that counts.”

— Winston S. Churchill

Sidharth Bharthan Menon
CEO, taxtotal​