Many business owners start a business without fully examining the 5 main reasons why their business success may be limited. At Prize Performance LLC, my business performance consulting firm, we see business owners all the time that fit into at least one of these reasons.
1) Unknown Business Position
Your business venture should evaluate your business position. It’s essential to survival. We at Prize Performance follow Porter’s 5 Forces, created by Michael E. Porter of Harvard University. Click here for more.
2) A lack of knowledge of important success elements
There are several elements for business success. These are:
- Value proposition – The customer value
- Customer Segment – Your customer and their need
- Channels – The sales method
- Customer Relationships – Creating demand
- Cost Structure – All costs
- Key Activities – The steps for generating revenue
- Key Resources – Needed to generate revenue
- Revenue Streams – Alternate revenue sources
3) A lack of leadership
This principle assumes you have a clear VISION and know HOW to get your business from point A to point B. You will need to budget for each department and give each a plan. You’ll need to be a cheerleader to energize and an orchestra leader to synchronize.
4) A lack of knowledge on competing
Your customers should validate your sales. Then monitor any changes. When changes happen, you need to change too. Without it, competitors will eclipse you, causing losses. This is your secret to competing. Here are qualities of good companies talking to customers:
- Listen – perpetually
- Interpret what is said
- Be creative in interpreting
- Confirm your interpretations
- Adjust your company
- Adjust existing or create new
5) A lack of business knowledge – not industry knowledge
Here is a list of key business knowledge you need to run any business, regardless of industry:
- Understand financial statements
- Understand business analysis
- Look forward, drive goals
- Evaluate progress periodically
- Use more successful strategies as needed
If you experience any of these, your company success is limited. The Prize Performance LLC team can help!
Rodger Stephens, CPA, CGMA is CEO of Prize Performance LLC. Prize Performance LLC is a consulting firm specializing in accelerating business performance for small to medium sized service businesses.
Consult by phone