Introduction

Successful businesses are the heart of a nation’s economy. Many factors lead to the success of a company. Understanding these factors will have a tremendous impact on how we view the success of a business. In my bid to understand what goes into making a business successful, I have compared and contrasted habits and practices between successful companies and unsuccessful companies. With extensive research conducted on the topic, I have established the methods and practices of making a business successful.

What Makes A Business Successful?

In a business, passion and determination are ultimately the pillars of success. If a company is eventually going to be successful, confidence is what will help it flourish. In the day to day running of a business, many unforeseen circumstances can disrupt the stability of a, and without determination, the moral of the business person may be affected (Kirkwood& Jodyanne 609). This may make him/her close down the entire business thus hindering success.

Before venturing in a business, it is essential that you choose a company whose operations you understand. This is very crucial and will save a lot of time and resources. Extensive research must be conducted on the chosen business idea so as to come up with an effective business plan. This research will also inform the business operator how to achieve success in the field. This ensures that any mistakes that could affect the stability of the business are recognized.

A solid strategy is also key to a business success. Strategy implements business planning and it is critical to plan out strategy by identifying what aspects of the business to focus on and also how to handle the competition. Such a strategy has been noted by business experts to lead to the future success of a business. In fact, the effectiveness of the strategy employed has been noted by business experts to de directly contrastable to the rate of success.

Money management is also key in the success of a business. Individuals who wish to start businesses must learn basic accounting or else they will mismanage their funds. Mastering finances can greatly improve the success of a business as any loses and expenditures will be balanced out (Kirkwood& Jodyanne 612). If proper accounting techniques are not applied, the results could be disastrous and may lead to bankruptcy. This goes to show how crucial money management is to the success of a business.

Factors to a Successful Business

The importance of a location to business is the cause of many arguments between business experts. However, a successful business has to put its location into consideration. The location arrived upon should be chosen after an assessment of various factors including the availability of customers, transport networks, security and the presence of competition. This factors are key to the success of a business and must be properly considered when starting up a business. In addition, the location of a business must be chosen in respect to the geographical area where its industry is based on. An example of this is the silicon valley where major tech firms are found in America, similar businesses being set up in one location enables the talents involved to move there creating a community around the business and in return nearly all business set up there will be successful.

The laws and regulations of the state or country the business is set up in must be carefully considered. If a business breaks the laws of the country it is set up in, then the success the business is compromised as the government could take up legal action against the company at any time. If a business however complies with the laws of the land, it becomes easier for the business to flourish and receive valuable services such as loans which may be instrumental in its success.

For a business to succeed, it must maintain an advantage over its competition. Competition has the capability of even closing down an entire business so identifying it and competing effectively could be the difference between success and failure (Kirkwood& Jodyanne 607). One has to be very cautious when going against his competition as there are laws in place to regulate competition and avoid certain actions may be deemed as criminal activities.

In the growth of a business, it is essential to partner with good experienced investors. Investors help in funding the expansion of a business and also dealing with unforeseen circumstances. Funding provided by the investor if used wisely can grow a business to unprecedented heights. An investor acts as a form of insurance helping the business owner in case of certain circumstances that may crumble the business especially if the business is not insured.

It is also highly important for a business owner to store up large reserves of money so as to better endure any mistakes that may happen in the future. Insurance can at times be unreliable and fail to cover certain mistakes this is why stored away money can be very reliable to a business. Lack of such a method of insurance can make the business succumb to an unprecedented circumstance.

Impacts of Education on a Business

Good education, especially in business management may greatly impact the success of a business. A business owner with such valuable experience knows the ins and outs of managing a business. Proper business management eventually causes a business to succeed (Scarborough & Norman 35). It is crucial for a good business to have an educated and capable staff. If a business owner does not have the right education required to run a business, to avoid any loses or entire failure of the business, it is crucial for the business owner to higher well educated staff so as to ensure effective running of the business.

A good business education not only teaches a person how to run a business but also how to interact with effectively with customers. Acquiring and maintain a loyal customer base is very important to the success of a business as customers directly affect the growth of a business. In order to effectively communicate with customers, etiquette is key (Kirkwood& Jodyanne 603). Customers must be treated in a very welcoming and appreciative manner even when they do not purchase anything. A basic education in sales will help the business administrator to understand the mentality of buyers thus know how to make sales effectively and how to arrange the business.

Business administration is also a good study course to help a business succeed. It also prepares the business administrator for success as he/she is already equipped with the tools required to run an expanding business. Without such education, running of multiple businesses is impossible unless an experienced employee is trusted with that role.

A good business education not only teaches one how to run an effective business, but also the psychological elements that help a business grow. Tasks as simple as arrangement of goods can help a business make more profit. There are various factors that ultimately affect the satisfaction of a customer and although some are physical, some are purely psychological (Scarborough & Norman 21). A good business education helps the business administrator determine the psychological factors that influence customer behavior and implement them to his/her business effectively.

Good education will not only prepare an individual for success, but also for failure. Most businesses fail before they eventually succeed and sometimes failure can lead to success. This is why a good businessman must never give up and must remain focused despite the challenge at hand. This determination is key in succeeding in a business venture and sets the difference between a good business and a poor business.

Mistakes That Prevent the Success of a Business

There are very many factors that could prevent the success of a business, understanding and avoiding them will help in a business’s quest to succeed. Failing to acquire investors can prevent the success of a business. Most people are not willing to give up a percentage of their business to investors (Scarborough & Norman 15). This fear is misplaced as businessmen and women are scared of losing control of the business. An investor will not be involved in a business unless both parties have reached an agreement. The funding provided by investors, when effectively used in crucial aspects of the business can lead to great success and also provide an edge against competition.

Running a big business can be a very tiresome task and finding qualified stuff can lead to success. It is also important to have adequate stuff so that the business can run efficiently. Most businesses who hold back on the number of employees lead to less customer satisfaction and this decreases the probability of the business succeeding. Employees must be assigned carefully and given a workload that will not affect their productivity. In addition, employees with no experience must be subject to training so as to improve their productivity.

Poor business management negatively affects the success of a business and can lead to the closure of the entire business. If the business owner does not have the required skills to effectively run his/her business, then it is vital that he employs someone with the necessary experience. If he does not do so, the success of the business may be unattainable.

The branding of a business must be done effectively as improper branding has the capability to tarnish an entire business. The branding of a business is instrumental to the success of a business (Kirkwood& Jodyanne 602). When branding, a business owner has to carefully think of his/her approach considering a lot of factors such as the main focus of the business, target market and social factors. Poor branding can greatly undermine the success of a business.

Lack of proper marketing and advertising can hold back the success of a business. If necessary, a business owner should consult an independent marketing and advertising firm so as to have proper advertisements that attract potential customers. Funding must be consistently put aside and dedicated to advertising as this is a continuous process. Advertising also has to be done consistently as competition arises every day and failure to do so could lead a business to lose its customers to another business.

How Failing Businesses Can Find Success

For a failing business to eventually succeed, great determination to succeed will greatly affect the results. A business owner should invest more time and thought to create effective strategies that will help change the status of the business. A business can in no way succeed if the owner is not willing to put an effort to its success.

If a business if unsuccessful due to lack of proper funding, success can be attained by the help of investors. The business owner ought to look for good investors who will provide funding in exchange for a percentage of the business. An investor can also provide more than just funding with most business investors having experience in making a business successful (Scarborough & Norman 15 ). This experience brought by the investor can be more helpful to the success of a business than funding, although both are very important.

A failing business must not underestimate the power of re-branding. Re-branding can ultimately be the cause of success as evident in a lot of businesses. For decades, re-branding has been a secret to success with most businesses that face initial failures finding later success due to proper re-branding (Scarborough & Norman 12). Customer opinion can effectively be shifted due to proper to the changing of a brand, it could open new possibilities and bring new customers to a business.

A business owner must conduct research continuously as customer requirements are always changing. He must strive to constantly keep up with the innovation of his competitors as well make innovations of his own to distinguish himself from competition (Kirkwood& Jodyanne 595). Research at some point should involve the customers and it is also important to get their feedback whenever possible as they are what keeps a business going.

Use of rewards and discounts is also a proven way to business success. This method has worked successful for many businesses over the years. Customers appreciate discounts and prospects of saving their money. In fact, this is arguably the best method of acquiring and retaining loyal customers. However, one has to be very cautious when issuing discounts so as not to incur loses.

Conclusion

A successful business is the joy and pride of any business owner but it takes a great deal of passion and commitment to make a business successful. It is however possible for even small businesses to attain high levels of success as certain methods have been proven to make a business successful. Business education can however make it easier for an individual to run his/her business more effectively and yield better results.

If the methods and approaches discussed here are implemented to a business, then the business will eventually succeed. Determination, proper strategies and good investors can change the success margin of a business and with greater levels of success being attainable in the contemporary world, the possibilities are unlimited (Scarborough & Norman 8). A business owner must retain his vision so as to persistently aim for the highest levels of success in his business. All business men must strive to attain success in their businesses as a good business is not only important to business men but also to the economy of a nation.

Works Cited

Kirkwood, Jodyanne Jane. “How women and men business owners perceive success.” International Journal of Entrepreneurial Behavior & Research 22.5 (2016): 594-615.

Scarborough, Norman M. Essentials of entrepreneurship and small business management. Pearson, 2016.