New! Startling Discovery of #1 Success Factor for New Small Business

Serial entrepreneur and business author rewrites his list of success factors for start up businesses

After an extensive internet search to see what others say about success factors, I found exactly one which included my number one in their top ten. On that particular resource, my number one was their number ten. The other lists were created using various approaches, including interviews with successful entrepreneurs, studies compiled by consultants or writers, and off the top of the head articles based on experience.

My research? As a marketing consultant I have spent the last ten years helping over 170 small businesses in very disparate fields with increasing their sales and profits. Over the past year I have participated in organizing MasterMind groups and Business Networking Referral called E-TEAM. Through this effort I have been introduced to another 100 companies where I was able to go deep into their companies success factors.

Also, I have started and managed 15 successful small businesses and 3 unsuccessful ones.


So here is my top ten list of why businesses succeed:

1. Desire
2. Sales
3. Marketing
4. Luck
5. Accounting 
6. Planning

 I would certainly agree with some of the other lists that adequate capital, location, good bookkeeping, appropriate margins, and things like traffic, leads, and conversion are critical as well. However, desire is that intangible which overcomes inadequacies that are always present in any business, whether start up or mature. 

If you follow my blog or other writings, you know that I want to be remembered for the phrase "nothing happens until something is sold." In my dealings with small business owners over the last half century, I am constantly appalled by the lack of sales skill. That lack of skill is often accompanied by a fear of prospecting, cold calling, and selling. Well, I don't really care how good your location is, how wonderful your product or service is, or whether you are priced right if there is no one to get the word out. And no, you won't get folks lined up at your door or your phone ringing of the hook with great web presence alone. 

If the owner hates to sell, desire to succeed, desire to help others, desire to spread the word about the fantastic offer the company is making can overcome the reluctance to do the hard thing and sell. This proposition can be applied to all the other hard things, like hiring, firing, working 100 hours a week, or digging deeper and deeper into savings when necessary, then calling Uncle Harry when your own money runs out. 

If the owner is lukewarm about the business, the smallest hurdle can undo the entire effort. But if the owner is passionate enough, there is almost nothing that can get in the way of success.  

 

Goal Setting is Step One for Any Business - from Startup to Selling Out

 

 Carefully Considered and Written Goals May Dramatically Increase Your Overall Success

My mom used to say: “You’re going off half-cocked.” Most of the small businesses that I have worked with could use the same challenge. Any well-run effort should have a plan, and every serious plan starts with the goals. The goals answer the questions:

• Why am I doing this?
• What are the ultimate success metrics?
• Why would consumers or businesses buy from me?
• Am I passionate enough to do what needs to be done?

There may be a few more questions for that list, but those would be a great place to start. There is an almost unlimited list of ways to make a living or a fortune. Evaluating your specific idea by asking these four questions can help you to make choices between options, and get serious with yourself about diving in.

You are about to risk substantial time, money, energy, and emotion. Setting very specific goals before you start that effort is A. Sensible, and will B. Actually contributes to your success.

You may want to start with your personal life goals. Have you thought them through? Have you written them down? Recent research has shown that those who write down their goals achieve success at a much higher level than those who have not. I believe this advantage derives from the kind of thought that goes into the writing process. You might have some general goals in your mind about what you want in the future, but writing them down will bring clarity, and cement them in your mind and heart.

Whether we are talking about personal goals like family size, where to live, lifestyle choices, and charitable efforts, or business goals like total sales, profits, or type of enterprise, clear goals will provide direction regarding strategies and tactics.

The headline promised that this article was not just for start-ups, and it isn’t. You can and should stop yearly at least to contemplate any changes in goals, and to review your progress towards achieving the goals you’ve been working on.

Another time to think through your goals is when there is a major transition such as a major new product line, an acquisition, a buyout offer, or retirement. Entrepreneurs are commonly distracted from their primary focus by some new, bright shiny object. Even a new line of business for the company may look great in concept, but not really be lined up with the goals you’ve set. Of course, you can change your goals any time, but it is better if that decision is considered in the light of “changing goals,” rather “it seems like a good idea.”

There are many excellent books on goal setting. The first few chapters of my book, “Running a 21^st Century Small Business,” take a deep dive into setting life goals.