Friday, February 3, 2012

10 tips for building a successful business

Now that my Beauty Kitchen is open (softly, softly) I am in the middle of reviewing what I have learnt and achieved in my first year of getting back in the biz saddle. In doing so I found these notes I had written over 10 years ago. They still stand true even tho market dynamics have changed so much. It also made me think that when you are in a solo biz it is very easy to get lost in the washing machine instead of hanging on the line with a breeze blowing and the sun shining! 
a Recipe for Success

1. Clear Vision
Simple and motivating. Well communicated. Never assume anything.

2. Business Model & Strategy
Fundamental to develop the 'perfect & profitable' company and operating structure.

3. Core attributes and Competitive advantage
A business must know what it is good at &
 protect its space in the market.
What differentiates it, is it sustainable?

4. Management & Communication.
A strong boss leads & builds a strong team (internal &/or external) 
and together they make it happen.
Build and use uniform and agreed methodology, processes and reporting systems.
Have the right people doing the right job – incentivise team.
Ensure the team think and act like business people.

5. Resources
Good set-up and management of time, cash, people.
Eg Centralise critical departments at source ie finance but
outsource non core activities to provide agility / simplicity / expertise
It is not always about resources …focus and prioritisation is fundamental to getting the right job done on time and on budget.

6. Innovation
Whether it be products, services, technology.
Continually develop the businesses innovation capability.
Be first to market and ensure it can be funded continually.

7. Market Knowledge
Know your stuff so you can easily make decisions.
Competitors. Sales History. Players. Customer/Channel/Market needs. Market Segments. Consumer needs. Drivers.
Have mechanism/system for continual update and sharing info.

8. Reference Sites / Credibility (+ now, Social Media)
Build upon successes (yours or others) to create a strong brand image.
Knowledge, customer wins, awards, PR, referrals.
Give better service than your competitors.
Guarantee your products unconditionally.

9. Strong sales and market potential
A market exists for you to generate revenue objectives
and has room to expand without sacrificing profit.

10. Sustainable Growth
Core proposition has good profit profile and
margin structure from day one.
Business has access to goods and services with minimal stock holding.

1 comment:

GetawayGuru said...

Just shows how good business sense stands the test of time. Excellent advice then and now!