Why do businesses succeed?
Every successful organisation has their own unique formula as to why they’ve seen growth and healthy profit margins, where others haven’t.
But all the consistently top performing companies worldwide share certain criteria which has led to their success (according to a report from the European Management Centre). We take a look at the top 7 reasons why – do you recognise any of these statements as being carried out in your business?:
- A clear and concise Vision and Mission, which is communicated to, and understood by, all the stakeholders (owners, management, employees, customers and suppliers) in the company. This answers the question, “Why are we in business?”
- A culture, embodied in the company’s Values, which meets the needs of the owners, the employees, customers and suppliers of the company. This definition of culture answers the question, “How will we conduct ourselves as we do business?”
- A uniqueness (Unique Selling Points) that separates the company from its competition. This answers the question, “Why should our customers buy from us?”
- Financial reserves such as ownership capital and outside lending resources, but most importantly, capital accumulated from a healthy stream of profits. A healthy stream of profits will attract ever-increasing amounts of ownership capital and lending resources to help the company grow.
- The ability to attract top performing people to accomplish the vision and mission. The really successful businesses do not depend on the charisma of any single individual, including that of the founder/CEO.
- Dedication to the principle Continuous Improvement, embodied by the Japanese word kaizen – never ending improvement – which means that even when things are going very well, successful companies strive almost obsessively to improve their product or service.
- A focus on things that the company does well (and the sense to recognise that doing some things well does not mean that the company does everything well).
We’d love to hear your thoughts on this topic. Would you agree with this list of 7 reasons or do you have your own to add? Do leave a comment below or email us at firstname.lastname@example.org.