Have You Got the Business X Factor?
Thursday, 18 March 2010 01:00
Why is it that some businesses succeed while others fail? Is it because the founder has star quality, or is it purely luck? Chris Barling, CEO of ecommerce software supplier, Actinic www.actinic.co.uk takes a look.
When you look at successful businesses, you’ll find some common themes. Is there a business X-factor that can be unpacked? In his book, Outliers, Malcolm Gladwell shows that talent is necessary, but not sufficient for success. Being in the right place at the right time is crucial, as is years of practice. This is demonstrated in a wealth of cases ranging from Bill Gates to premiership footballers.
Know where you are going
People have different motivations for starting businesses, ranging from wanting to make a fortune, to doing good in the world. But everyone has something in common, no one wants to fail, and that means you will have to make a profit. So this objective is taken as read.
After that, it pays to have a plan. Occasionally a business succeeds by accident, but that is rare. The key thing is to get the plan right. So spend time working out who your customers are; what you are going to provide; what they will pay; and how you will market. Then you need to understand your costs and find out what the competition is doing.
Be flexible with that plan
Understanding where you’re going is great, but I am sure we have all read newspaper stories about hapless travellers whose satnavs took them up a track, across a river or over a cliff. They thought they had the route cracked, but when disaster loomed it was important to be flexible.
Sometimes the need for flexibility comes from seeing a great opportunity. Simon and Amanda Walker of www.cultpens.com opened a stationery shop in a quiet part of the southwest, but noticed that there was a demand for unusual pens from visiting holidaymakers. Now they have a booming online business selling a range of over 6,000 different pens.
Stay focussed on customers
The biggest user of my company’s ecommerce software grew its business from nothing to £23m in a handful of years. Chatting to founder Steve Hanbury recently, I was reminded of his obsessive commitment to customer service and value. Customers pay the wages; forget this and you’re in trouble. All successful businesses are centred around their customers.
Enjoy yourself
We are generally good at what we enjoy, and enjoy what we are good at. Business is hard, so focus on a market where you have some expertise and interest.
X factor
Do the things above come naturally to you? In business, they certainly contribute to the X factor. If you watch the TV show, you will know that the truly talented people are often slightly hesitant about their capabilities. The mad ones come with the least doubt and little talent. The best ones are always open to improve.
So maybe that’s the key. If you are sure you have the X factor, you probably haven’t. If you’re committed to learning and improving by listening to lots of advice, maybe you have.
Written by Chris Barling, CEO of ecommerce & EPOS specialist, Actinic. Originally published on homebusiness network.