Unfortunately, not every entrepreneur makes all the right moves for their business. Big profit in the beginning does not always indicate long-term success.
Let’s get smart. What are the criteria for a successful (and sustainable) business? Let’s find out below.
1. Delivering what people need
A promising business is one which answers a need in the daily lives of consumers. If it’s not needed, you could be wasting your time and money.
So how can you identify what people need? Actually, the answer is pretty simple. Think of the most basic things we need to survive; nutrition, shelter, safety and belonging. If your business is grounded in one of these elements, it’s a good start.
2. Not just being part of a trend
Some products and even businesses are here today and gone tomorrow. If your business idea is founded on a trend that is unlikely to continue long-term, then you could run the risk of being successful for a short time before you ultimately fail.
If want to create a long-term business, but you aren’t confident in your ability to innovate and move your business beyond the trend, we would recommend searching for another idea before diving in.
3. Having growth potential
One of the most important factors in creating a successful long-term business is having the potential to grow. One way to capitalise on growth that already exists without having to completely start from scratch is by managing a franchise.
You get a taste of running your own business, but the familiarity of the brand means that you already have a built in presence and customer base from day 1.
4. Knowing when to sell
Building a successful long-term business doesn’t always mean you have to sell your product or service all the time. Paying attention to demand and knowing when to sell is just as important as what to sell.
If goods are scarce when the demand is high, you can increase your price. But equally, knowing when demand is low can save you money you would otherwise have spent on marketing or running costs.
What business ideas can you bank on?
Now that you know the criteria of a successful business, let’s move to some business recommendations that can you choose from.
1. Food businesses
Everyone always needs a bite to eat, so it’s no surprise that culinary businesses are some of the most prevalent in the Philippines. Even though some food businesses naturally fail, the percentage is small compared to the survivors.
There are many ways you can get into the food business. As mentioned above, you don’t even have to start from scratch if you don’t want to – franchises are a great way to bank off the success of a pre-existing brand.
2. Barbershop businesses
Everyone needs their hair cut, but everyone has different needs. It’s not just about personal style – office employees and school-goers often need to have a short-cut, so setting up something simple and cost-effective to cater to this market could be a great opportunity.
3. Health businesses
Healthy living is increasingly becoming a prominent part of our society. But there are many avenues that you can explore when it comes to providing a health-related product or service. Some examples include, healthy foods or drinks, health-focused activities such as yoga or pilates, or even something as simple as stress-relieving services such as massage or aromatherapy.
Earning money and making people healthy at the same time? Who wouldn’t want to do that?
So, now you know some of the criteria for running a successful long-term business as well as a couple of business ideas to get you started. Good luck!