5 Key Differences of Failed and Successful BusinessesJul 09, 2021
What are the differences between successful and unsuccessful businesses?
Have you ever wondered why some companies make it in business, while others flounder? This is a very complicated question the more you think about it. Especially in light of the fact that billion-dollar corporations can collapse out of nowhere, while tiny little enterprises burst onto the scene with game-changing business models. The race is certainly not to the swift in business, so what gives?
The Equation of Business has Many Different Factors
Business Expert Travis Thorpe suggests that, “Entrepreneurs are determined, bold, and competitive. Most of the time, they have the personal qualities they need to run a successful business. Then why is it that an astonishing eight out of ten small businesses fail every year? By examining pitfalls in businesses that are doing everything ‘right,’ it becomes easier to see how it takes more than good intentions to achieve success.”
Here are a few ultimatums that mean the difference between survival or extinction for businesses:
1) Quality of Leadership
Successful businesses have strong management, whereas unsuccessful businesses have weak management. Good governance is essential to stability and exponential growth.
2) Debt Levels
Successful businesses understand how to manage debt, whereas unsuccessful businesses drown in it. Survival in business boils down to one financial rule – make enough profits to manage expenses.
3) Stiff Competition
Successful businesses outperform their competition, whereas unsuccessful businesses underestimate it. Regardless of what a company does, there has to be something about their product or business model that gives them a competitive edge.
4) Ethical Shortcomings
Successful businesses reject corruption, whereas unsuccessful businesses practice it. Ethical standards are a form of quality control. They prevent destructive decision-making, and guarantee the well-being of all stakeholders involved in a business.
5) Customer Receptiveness
Successful businesses secure customer loyalty, whereas unsuccessful businesses overlook it. Companies have no chance of generating sales at scale without an attractive brand. When customers fall in love with a brand, they keep coming back for more.
On paper, it’s easy to assume that the only thing a business needs to thrive is its product. But in reality, there are many other internal and external moving parts which influence good standing. At the end of the day, success in business can only be achieved through wise judgment. Business is a pursuit which requires dynamic thinking, and calculated, strategic execution.
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