Want to know a secret?
A great deal of your success as a business owner comes down to luck. There’s luck in bringing a product to the market at just the right time or luck in capturing the attention of a vocal customer who will refer you to others, and there’s luck in coming up with a great idea, to begin with.
However, you cannot rely on luck alone to carry your brand. You also need to back this up with consistent, hard work and planning so that you can lay the foundations for success.
With that in mind, here are eight things you’ll need to set your business up for success, regardless of whether or not luck is on your side!
Let’s explore eight factors for business success:
1. A great idea, backed by a solid plan
According to a recent study, 74% of adults in the US have, at one point or another, come up with an idea for a business in their head. Despite this, only 7% of US adults are running a successful, established business in 2024. Why? Because a good idea alone is not enough to bring a business to life, you also need a solid business plan in place.
This is because your business plan helps you turn your business into something tangible – into a profitable model as opposed to an idea, and provides you with guidance every step of the way. Ideally, your business plan should contain some (or all) of the following:
- A summary of your business (Who you are, what you sell, your message and ethos)
- Basic business information (Business structure, owners, business address, USP)
- Branding (Logo design, color schemes, and tone of voice)
- Market Analysis (Research into your products, target audience, and the market at large)
- Financial plans. (Budget, funding sources, etc).
That’s why an Idea with a plan is one of the factors for business success.
2. Initiative and drive
As you’ll encounter many challenges and setbacks when running your business, it’s also important that you possess a certain tenacity and drive. After all, this will allow you to maintain a positive mindset, which, in turn, will allow you to take initiative in these scenarios. This means that you can remove the issue or conquer the challenge as quickly as possible, as opposed to allowing it to derail you completely.
Your initiative and drive will also have a profound impact on those working alongside you, fueling engagement and positivity among your team as they work to reciprocate your energy and enthusiasm. Therefore initiative is one of the factors for business success.
3. Industry-specific software
When first starting out in the business world, you’ll likely need to keep a close eye on your budget. However, there are some things that are simply worth the investment, including industry-specific software and technology. After all, these tools often allow you to work faster, smarter, and harder and can be a key contributor to your long-term success in doing so.
No matter what industry you operate within, there are sure to be factors for business success like software and tools that you can purchase that will help you along the way. For example, if you work in coding or data management, then you may want to purchase Airflow, which is software that can help you author, schedule, and monitor your data pipelines using Python. This saves you a considerable amount of time and energy!
4. An open mindset
It’s important that you approach your business with an open mind. This is because you’ll then be able to adapt to any changes that are thrown your way without difficulty or complaint. This is particularly important when you consider the fact that the business world is ever-changing, and no two weeks (or even days) are ever really the same. Generally speaking, the more you’re able to adapt to change, the longer you can expect your business to remain in operation, as it’s often when businesses become static that they move toward closure.
Furthermore, factors for business success, maintaining an open mindset also means that you’re likely much more open to learning opportunities that can help you to grow and develop as a business owner. For example, you could sign up for leadership courses that help you to become a more skillful, competent leader!
5. A strong team
While you may begin your business journey on your own (aside from the moral support of your friends and loved ones), there will come a time when you need to start thinking about hiring additional employees. For example, they could become necessary when the demand for your products/services extends beyond what you’re able to carry out independently or because you’re looking for the support of someone with a specific skill set. In any case, building a strong team is one of the factors for business success.
Fortunately, there are many ways in which you can set about building a strong team, starting with curating an effective recruitment strategy or partnering with a
recruitment agency. If you’re struggling to find the ‘perfect’ employee, then you may want to consider whether or not you’re presenting yourself as your ideal employee’s ‘perfect employer’. For example, are you:
- Offering them a competitive wage?
- Offering them any additional benefits?
- Offering fair holidays and PTO?
- Providing them with opportunities for growth and development?
If you answered yes to all of the above questions, then you may need to change your perception of what an ‘ideal’ employee actually is. Remember, you can nurture potential and natural talent into something great if you give somebody a chance!
6. A stellar marketing plan
If you want your business to succeed, then you need to get your name out there. While this can be achieved through traditional word of mouth, the majority of businesses build their customer base through their online presence. This means that you need to develop an effective marketing plan moving forward!
For example, in addition to posting consistently on social media, you may also want to partner with influencers who share a similar audience to your own. While influencer marketing is a relatively new concept and among important factors for business success, it can prove to be incredibly beneficial, especially when you consider the fact that “over 60% of consumers trust recommendations from influencers when making purchasing decisions.”
You should regularly review your social media analytics so that you can ensure your campaigns are performing as intended. Without doing so, you may be spending money on posts that aren’t bringing forth a positive ROI!
Alternatively, you could make social media marketing as easy and straightforward as possible by hiring a social media manager to take care of this on your behalf.
7. Money
While you don’t need millions of dollars to start a business, the truth is the more money you have during the earlier stages, the easier it’ll be to grow and develop your brand. After all factors for business success, this means that you can invest in everything from technology to recruitment without worrying about going over budget.
However, this does not mean that you have to drain your own bank account (no matter how willing you may be to do so). Instead, you could reach out to investors who may be willing to support your venture. Before reaching out to an investor, however, be sure to:
- Put together a strong business plan and a compelling sales pitch
- Research previous investments/projects they’ve worked on, ensuring that your visions align
- Have an idea of what kind of investment you’d like from them and what it would be used for
8. A strong understanding of your target audience
The stronger your understanding of your target audience, the easier it will be to succeed within your business. After all, if you’re unable to paint a clear picture of your customers in your mind, how could you even begin to win them over? Conversely, the more you know about your customers, the easier it’ll be to curate the kind of products and services they’ll love! This can also go a long way toward helping you build a strong relationship with your customers, which will encourage repeat purchases on their end.
There are many different ways in which you can strengthen your understanding of your target audience, starting with basic market research. For example, you should ensure that you have an understanding of your key demographic (their age group, their financial situation, gender, etc) alongside their shopping and spending habits.
You can take this one step further by hosting a series of focus groups, where you’ll have the opportunity to interact directly with members of your target demographic. While they can be incredibly beneficial when your business is in its infancy, it’s worth hosting several focus groups a year, especially as customer needs and expectations can change so frequently. It’s also worth hosting them ahead of launching a new product so that you can ensure there’s a suitable demand for them before investing your money and time!
Final thoughts
In short, there are some things that you simply need when starting out a business – as without them, you’ll struggle to reach your goals, even when luck is acting on your side.
Factors for business success from a strong business plan to a strong team working alongside you, following this guide, will help you set yourself up for success, regardless of the kind of business you are running!
