5 Secrets To Starting A Successful Business In 2018
If you are a Business owner, or are seriously considering starting your own business, you would definitely want your project to be successful, but for a moment.
What Does Success Really Mean to You?
You will inevitably have a definition of yourself, as well as dozens of people around us, each of whom has a special answer. For example, you will hear: “The shop is full of customers”, “Making millions” or “Acquiring the project from a giant” Opaque and meaningless “to be the best”.
At the beginning of my business I was at an impulsively ambitious stage, but over the years I began to realize that clear criteria for success must be set so that you can assess your performance, and know whether you are really going the right way or not. Let’s take the common definitions of success and analyze them here:
5 Secrets To Starting A Successful Business
➨ Be a reputable company
This is a purely emotional definition. What matters in trade is the financial and strategic results. External appearances are an achievement and should not be a criterion for success. What is the benefit of the office if the company is not able to achieve a good income, and the benefit of the large number of employees if the presence of some of the waste or burden on the company more than financial capacity.
➨ High income
The word “million” is beautiful, perhaps the most beautiful of which is “billion”! Perhaps the success is that the business will achieve a revenue of one billion riyals a year? It is the one who will fail and in his possession revenues of one billion riyals can do whatever he wants. Is this really an accurate criterion for success? not exactly. If income is 1 billion but expenditure is 1.3 billion, there may be a problem. Zain, for example, had an income of about SAR 7 billion in 2016, but the cost of operating and expenses was about SR 8 billion. It is not the first year you lose, but this happens to her year after year. Perhaps there is a more accurate definition of commercial success.
➨ High Profits
This definition may be more accurate than before. Here, we do not want a high income, but income is higher than the cost of operation and expenses, so net income is high. In short term, this is a good indicator, but the problem is short. Term! This standard gives priority to profits at the expense of expansion and target market share.
Amazon, the e-commerce colony, which is over 20 years old, has made little profit to this day, and does not want to make profits – probably – for the next 10 years, why? Amazon founder Jeff Bezos says: “I will continue to invest (expansion) because withdrawing profits from the project means sacrificing opportunities.” Amazon, despite its size, accounts for only 1% of the US retail market, and less so globally, which in the eyes of Bezos is an expanding market. (A good article about Amazon’s Profitability). The rising company Tesla has the same behavior.
From the previous paragraph we may conclude that a successful project is a project that can grow exponentially, increase in size each year, increase its market share continuously, for example, that product sales increase 20% every month or that users of the application 50% per month, or increase the number of branches 100% each year, enter new countries, and continue to increase and expand year after year .. There should be gradual growth from a primitive product, or a miniature application, or a simple place, to a producer with large factories, An electronic platform used by millions, or a shop that opens a branch every week in a new country around the world.
A simple problem here is that growth, despite its great attractiveness, and the tasty feeling it brings, brings many concerns to founders and investors for fear of a sudden fall. The more you grow, the more heavy, the more bureaucratic, the more difficult you are to innovate and diversify. What if your product is no longer competitive? What if a fierce competitor offers a price lower than you or a higher-quality product? What if people’s taste changes and suddenly you realize late that what you offer is no longer desirable?
Are we confused with you, do you mean that success is to be post-growth sustainability and durability (Durability)? In his beautiful and informative lecture, PayPal founder Peter Tyle says Silicon Valley overstates “growth” at the expense of “steadfastness.” And that 85% of the value of famous projects such as Facebook, Twitter, Airbnb, are not present right now but after 2024. That is, the actual value hidden in the future not now.
Growth is a good thing, and it makes you guess the future, but will it last ten years or 15 years? In order to achieve this, one product or service should not be tied to one another. Diversification of services, introduction of complementary products, rapid adaptation to technical and technological developments, and integration of them with smart and efficient delivery. You have an expanded base of users or customers, they must really have added value to them or they will abandon you.
But there is a small problem with this standard. Big problem in fact: it is considered 99% of the world’s business enterprises failed! And they will not be called successful until they become a giant and steadfast colony. This is illogical. The vegetable shop in the side of my house serves me well, the seller is hardworking and kind with me, and brings good greens and fruits, not fair because half of it is not successful because it has not become an empire in selling vegetables around the planet.
Abstract: There is no fixed definition of success
Yes, the measure of success is determined by the objective or criterion established by the project founders or by the criteria established by the Board. It may be the founder’s goal to apply for the acquisition and sale of his share, which brings him a good fortune to make him a beautiful house and demonstrates his small family. Or perhaps the restaurant owner’s dream is that his restaurant has many branches in his beloved city. He enters the branch and finds people very pleasant to taste his food. He does not care much about expanding to other cities and getting into a tired spiral of expansion. He may not care much about money. For the recipes he creates from time to time. Or perhaps the desire of the chief executive and the angel to bring their product to the world, to make a lasting change in the history of mankind.
The more accurate you are in determining your success criteria in your project, the less random and drastic you are, the more intense and efficient you are, and the sooner you succeed. Connect your criteria with numbers so that they are not blurry and fantastical. If your goal is to increase users, be clear (40% more users per month, for example). The important thing is not to rush enthusiastically to succeed, and you do not know this success.
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