Do you want to succeed in business? Being a successful entrepreneur takes more than just having an idea. Certain criteria have been proven time and time again for businesses that achieve long-term success.
Knowing what these criteria are can give you an edge when it comes to starting and running your own company. Let’s get smart. What are the criteria for a successful (and sustainable) business? Carry on and find out below.
1. Delivers what consumers need
A promising business answers a need in the daily lives of consumers. You could waste your time and money if it’s not consumable daily.
So how can you identify what people need? 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. Offers an evergreen product or service
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, you could run the risk of being successful for a short time before you ultimately fail.
It must stand the test of time, a product or service that the next generation will still find useful. Suppose you want to create a long-term business but aren’t confident in innovating and moving your business beyond the trend. In that case, we recommend searching for another idea before diving in.
3. Has growth potential
Growth potential is a measuring stick, so you can gauge if you are going in the right direction. A successful business should always focus on immediate and long-term objectives and turn those inevitable difficulties into opportunities for growth and success.
Managing a franchise is one way to leverage growth without starting from scratch. You get a taste of running your own business, but the brand’s familiarity means that you already have a built-in presence and customer base from day one.
4. Knows 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.
You can increase your price if goods are scarce when the demand is high. But equally, knowing when demand is low can save you the money you would otherwise have spent on marketing or running costs.
5. Understands the customers better
A key factor to a successful business is a deeper insight into customers’ needs – which pertains to any business regardless of the sector. Knowing what matters to your customer base as trends develop and change, then adjusting and adapting your offerings accordingly, should be part of any long-term business strategy.
Companies who understand how their customers think, feel, need and act tend to enjoy higher customer loyalty rates and better positioning in their market overall. This increased engagement leads directly to increased profits, allowing the company to remain competitive today and far into the future.
What business ideas can you bank on?
Now that you know the criteria of a successful business, let’s move to some recommendations you can choose from.
1. Food business
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. Online selling
After the pandemic and with more people staying connected through digital channels, everyone from large multinationals to small entrepreneurs is using technology and reaching customers worldwide.
Plus, with advances in internet technology, setting up an online store for your products and services becomes easier by the day. You can create a seller’s account on Shopee and Lazada and upload images of your products.
3. Health and wellness
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?
4. Internet services
Internet services are becoming an increasingly viable business idea for those looking to get ahead in the tech industry. With the rise of digital marketing, more businesses have turned to online channels to drive and retain customers.
The best part of starting and running an internet service business is that it’s easy to scale up with minimal financial costs. Furthermore, this business model encourages sustainable growth since different services can easily be integrated.
So, now you know some criteria for running a successful long-term business and a couple of business ideas to get you started. Good luck!