5 Factors that Will Determine the Success of Your Small Business

5 Factors that Will Determine the Success of Your Small Business

The only reason why someone would name luck as a factor of success in the business world. Is due to their own ignorance or lack of knowledge on the subject matter. Randomness is nothing more than the word that fatalists give to the fact that they don’t know all the factors that are controlling the market. Just because you don’t know why something happened. It doesn’t mean that it happened on random or, worse yet, for no reason. With that in mind, here are five factors that are known to determine the success of your small business. These are the 5 factors that will determine the success of your small business.

1. Strategy elements

When it comes to the issue of strategy elements, things are quite simple. What you need to do is figure out the industry’s identifying dominant characteristics, assess the competitive forces and figure out the driving forces. All of this may sound incredibly complex. The truth is that it’s really not that hard. With some business training (courses or mentoring), a bit of experience and some courage it’s easier. After this is done. All you have to do is figure out how to position yourself properly in this situation and you’re bound for success.

2. Attributes

The next thing you need to consider is the attributes of your business and products. As well as how they compare to what is expected from you by your clients. If there’s an already existent market. You can just analyze the similar section of your closest competitor’s business and see what they’re doing right or wrong. They might have already set the criteria too low or too high. Which will determine the kind of resistance your own business will meet in the field. Either way, it’s also good to ask for an outsider’s opinion and perspective. Seeing as how you’re bound to be biased about the ability and capability of your own business.

3. Competitive capabilities

You also have to think about your competitive capabilities. What you need to do is check the competition in the field.  Seeing as how the saturation of the niche and your ability to stay competitive is what makes all the difference. The saturation of the niche can be checked via simple keyword research. What you need to do is type in several of the most common niche-related keywords. If you get the same 3-4 results every single time. Chances are that the market is not really that segmented and, therefore, not as welcoming.

4. Business assets

One more crucial matter here is your business assets. This includes all sorts of business assets (staff, equipment, cash resources). As well as, secondary assets that you use to improve your cash flow. For instance, you could choose to go for forex trading via platforms like Ever Forex in order to create an extra passive source of revenue, which may help you cover your operational costs even in the worst-case scenario. Consider this your own contingency plan.

5. Market need

Market need is one of the most important things (if not the most important thing) out there for the success of your small business. In fact, as many as 42 percent of all startups fail because there’s no market need for what they offer. The reason why we put this as last is due to the fact that it’s quite controversial. Think about it, before Henry Ford, no one would believe that there’s a market need for automobiles either. Still, this is a one-in-a-million success story and probably not a risk that you should take.

The very last thing you need to take into consideration. Is the fact that determining the success of your small business; isn’t something that will always be in your hands or under your control. This, however, doesn’t make these factors useless. First of all, they’re indicating that the time is right or wrong for your endeavour. Second, it gives you a chance to increase your odds. Which is not nearly as insignificant as you may expect it to be.