Not every business is created equal. There are thousands of businesses in the world and while many of them thrive, others fall into bankruptcy after many years of success and some even fail within their first year of existence. Whether you are looking to launch a new company or are searching for a way to make your current business sustainable, it is important to understand what elements contribute to a company’s success. Here are five characteristics you should strive to cultivate in your company if you want to set it up for success.
All successful companies have specific purposes. While this purpose should be tied to your business’ product line, it should be different. For example, a business that offers skincare products simply for the sake of making a profit will likely not be sustainable. However, a skincare company with the intent of creating unique products that are good for skin and reverse visible signs of aging may be more successful because it has a specific purpose. Another example of a well-run business is OncoCellMDx Inc. Operated by Harry Stylli, this corporation creates diagnostic tests to identify cancer. The company has a clear, specific purpose and does not branch off into other areas of the healthcare industry.
A company cannot succeed if it strays from its original purpose. A fashion company may have fragrance, clothing and accessory lines but should not venture into the home décor industry. Pharmaceutical businesses should focus on developing medication for specific diseases rather than developing medical equipment. A specific purpose helps the company stay focused so it can grow in the right direction.
Even after a business begins to turn a profit, you have to put in a lot of work to keep it operating efficiently. There will be years with small profits and other years with extraordinary earnings so you need to maintain the same passion for your company throughout the normal ebb and flow of the business world. You may feel burned out at times but it is important to remember how far the business has come. One way to maintain a passion for your company is to keep a log of every obstacle you have overcome. When you start to feel your original passion slipping away, review the log to remember how far you have come as a business owner.
You may also find it beneficial to keep a list of future company goals. Every time you accomplish a goal, add a new one to your list to keep yourself motivated. Your goals will vary widely depending upon the needs of your business, but some common ones are listed below.
- Turn a profit for two years in a row.
- Increase philanthropic efforts.
- Open ten locations.
- Launch a unique advertising campaign.
- Hire 500 employees.
Your business model and structure play a vital role in the sustainability of your company. You need to have a business plan carefully laid out before the company even launches. However, do not be afraid to make minor adjustments to your plan to accommodate business growth. This structure should identify the purpose of your company and lay out how you want to run it. You should also include a section discussing your brand values and how you want to reflect them. Finally, have a general idea about how you intend to invest profits into the business to stimulate growth and achieve your goals.
Business sustainability is reliant upon your market. You should identify your target market before launching the company and every advertising campaign should be geared towards that market. However, it is important to remember that your market is constantly evolving. Make sure your market is sustainable in the long run and will continue to need your company’s products or services. You can grow with your target market by expanding to include new items in your product line or changing services to meet the needs of your clients.
A company’s success is tied directly to its profit. While new companies can be successful if they break even at the end of the first year or two, they must start turning a profit if they want to continue operating. Profits allow the company to pay employees, purchase inventory and launch advertising campaigns. Without money coming in, you can’t fill these obligations so the company won’t grow. However, it is crucial to remember that hoarding profits is never a good idea and you should always reinvest a significant portion of them back into your business.
Running a successful company can seem daunting. It requires a significant amount of hard work and dedication even after the business has been established for years. Focus on cultivating these five characteristics within your company to set it up for success and help it to thrive regardless of its size or type.