Key Factors contributing to the success of the business
Posted: November 09, 2011 by Vestroia in
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1. Sell each unit at a profit. Evaluate each and every product that you sell and determine if you are selling them profitably. If not, you may need to identify how to make its current sales profitable, whether by reducing your costs for that product or increasing its price.
2. Continue to reduce overhead costs. A lower overhead should be a continuing objective for your business. You can cut costs by evaluating your insurance needs, reducing your reliance on outside consultants and service providers, or cutting down unnecessary supplies and equipment.
3. Develop new products while maintaining the high quality of existing products. Ensure that your products are created or chosen in response to the needs of your customers. Ask for customer feedback through surveys or direct interaction with them to find out what are the items that they need and expect from your business.
4. Find and retain high-value customers. The 80-20 rule of business states that 80 percent of your business will come from 20 percent of your customers. It is therefore critical that you exert the extra effort to ensure that you retain the business of your top customers.
5. Create and maintain the highest level of customer satisfaction. A very important success factor needed to sustain your business is to provide the best service to your customers. Satisfied customers are more likely to come back to you. Better yet, give your customers more than they expect.
The above are but a few of the key success factors that you can use for your business. Your key success factors must encompass all the important areas of your business, from finance, marketing and product development, sales and customer service, and human resources.
As a small and home business owner, understanding what you must do to make your business a success is the first step to your path to entrepreneurial success.