Many small businesses fail—some even before they find any real measure of success. To thrive in the business world, there are certain characteristics you'll need. Here are ten you should focus on.
1. A Clear Vision
A clear vision is imperative to running a successful small business. Write a mission statement that defines the purpose of your business and the value it provides for consumers. Ensure all business efforts are in service of this mission. Your vision should include your goals and strategies for growth. This can be used to get your team on the same page so everyone can work to accomplish the same things.
2. Strong Leadership
While a clear vision is important, it takes strong leadership to make it a reality. Set the right tone for your company by making tough decisions and keeping your team motivated. That doesn't mean you need to micromanage your employees, but you can lead well by creating a culture of trust while also holding people accountable for their work.
3. Decisions Are Data-Driven
Decisions are part of leadership, but make sure you're making informed ones. Use data to guide you.
"Businesses can make smarter decisions by setting clear goals and tracking progress through key performance indicators (KPIs)," says Callie Cook at the U.S. Chamber of Commerce.* "And by establishing SMART goals (specific, measurable, achievable, relevant, and time-based), entrepreneurs can focus on meaningful outcomes like boosting sales or growing their social media presence. KPIs provide measurable insights into areas like marketing, sales, and operations, which can help determine if your business is on track. Regularly analyzing these metrics enables business owners to identify what’s working and what isn’t—and when and how to pivot."
4. Adaptability
A strong small business must be able to adapt to changes. This is increasingly important in the modern age, when the rate of change happens rapidly in technology and consumer preferences (as well as those of workers). Adapt to change instead of resisting it. This could mean a shift toward e-commerce, the adoption of new software, or designing a new business model. Don’t stay set in what you’re doing if it’s no longer working.
5. Financial Responsibility
Financial responsibility is a key trait for any successful business. That means managing your money carefully and staying on top of cash flow. Maintain a realistic budget and try to minimize any unnecessary debt. When you have profitable periods, be responsible with the money and reinvest it back into your business in a strategic manner. Maintain an emergency fund to help your business during tough times.
6. Decisiveness
To be successful, you must also be decisive. Decisions aren't always easy, but you need to be able to make them—for better or worse.
"To be successful, an entrepreneur has to make difficult decisions and stand by them," says Kelsey Miller at Harvard Business School.** "As a leader,
they’re responsible for guiding the trajectory of their business, including
every aspect from funding and strategy to resource allocation. Being decisive
doesn’t always mean being correct. Entrepreneurs need the confidence to make
challenging decisions and see them through to the end. If the outcome turns out
to be less than favorable, the decision to take corrective action is just as
important."
7. Staying Current with Trends
It's important to keep up with trends, even if you don't adopt them all. Pay attention to consumer preferences, technology, and shifting industry standards, especially when they may impact your operations. Staying current can help you gain a competitive edge and spot opportunities early on.
8. Continuous Improvement
Make it a point to never stop learning and to continue improving your operations. Staying current on trends will help, but it shouldn't end there. Seek feedback and invest in professional development for yourself and for your team. Keep looking to improve so your business doesn't stagnate. This will help prepare you for new growth opportunities.
9. Great Customer Service
The best businesses have great customer service. In fact, without it, you might be setting your business up for failure. Your success depends on customers wanting to buy from you, and if you fail them, they are unlikely to return. Worse yet, negative word-of-mouth can spread quickly—online and off. Make sure your team is trained to help customers to the best of their ability.
10. Innovation
Be willing to innovate so you can set your business apart from competitors. That doesn't mean you have to invent new products and services all the time, but finding ways to improve processes or making your offerings more unique also qualifies. Be innovative and help your customers solve their problems in a way that others don’t.
* https://www.uschamber.com/co/start/strategy/successful-businesses-common-characteristics
** https://online.hbs.edu/blog/post/characteristics-of-successful-entrepreneurs
