what are the keys to a successful business?
We believe there are many keys to a successful business and we even have important principles for our company. Here I want to share some of this top keys with you.
Business is the art of finding solutions that are beneficial to problems. Every successful entrepreneur and each on is a person who can identify a problem and give a solution to it before others do it. Here are six rules for entrepreneurship and “the key to a successful business” as well.
1. The Product Must Satisfy an Immediate Need
The first rule to consider in choosing any new product or service is to determine whether it meets the genuine and existing needs that customers have right now. A new product or service must solve a problem for the customer or make the customer’s life or work better in a cost-effective way. You must be very clear from the beginning about exactly what your product or service does to improve the quality of life or work of your customers.
2. Offer Good Quality at a Fair Price
The second keys to a successful business with any product or service is that it must be of good quality at a fair price. If it’s in competition with other similar products or services. It must have what’s called a Unique Selling Proposition– One or more features or benefits that make it unique–different and superior to any competitive product or service.
This area of uniqueness is central to success in business. No product or service can succeed unless it’s somehow unique and superior to any other product, service that competes with it. There’s seldom any opportunity to build a business around a “me too” product. A product or service that’s just the same as all the others where the only difference is that it’s you who happens to be selling it.
The safest business strategy is to start up with an accepted product that already has a widespread market and then find a way to improve upon it in some way. Deliver it faster, creating it better or of greater value or lower the price of the product or service in some ways. Instead of trying out to invent a new business or industry, start with a product or service that people are already using and find some ways to make it more desirable.
3. Be Careful With Your Money
The third keys to a successful business is tight financial controls and good budgeting. Successful companies use accurate bookkeeping and accounting systems. They put these systems in place at the very beginning and carefully record penny they spend.
Even the largest multi-national companies–those that do billions of dollars in sales each year, tend to be very careful with their expenditures. They’re constantly looking for ways to cut costs while maintaining the same level of quality. They focus on frugality at all times.
Especially with a small business–You must hold onto your cash as a drowning man would hold on to a life preserver. Cash is the lifeblood of the business. Cash flow is a critical measure and determining factor of business success.
All successful entrepreneurs install careful financial controls and monitor them every day. They carefully consider every expenditure, they take the time to analyze the use of every dollar. And they work from detailed budgets and they review them every week and every month.
The basic keys to a successful business is this: only spend money to earn money. In business there are only two categories: revenue and expense. The basic rule for running your business is “If it’s not revenue, it’s expense!”
5. Guard Your Cash Carefully
One key to survival in your business involves “eagerness and meagerness. When I worked for a man who started with nothing, and by the time he was 55, he had already built a business empire of $ 800 million .
I was surprised to see him eating lunch at a small restaurant across the street from the office and driving a used car. He is happy to save money.
Sam Walton, the founder of Wal-Mart. When he was worth more than $ 25 billion but still drove his pickup truck to and from work. The downward-looking attitude permeated every aspect of Wal-Mart all the way down and throughout every department. The practice of frugality ensures that the business was profitable, year after year.
6. Maximize Your Marketing
Perhaps, one of the most important keys to a successful business is strong motivation in the sales department. This requires an emphasis on marketing that permeates the entire organization. Everybody must think about selling and satisfying customers all day long.
What’s the purpose of a business? Some people say that it is for profit but actually this is not accurate. The real purpose of a business is “create and keep customers. Profits are the result of creating and keeping a sufficient number of customers in a cost-effective way. All emphasis has to be on creating and keeping customers.