Why Do Businesses Succeed?

​My ongoing research through the years includes why some of my entrepreneur graduates succeed in business and why others are less fortunate. Business success is defined in many ways, but the bottom line is profitability. 

Profit is considered the money remaining after a product or service is sold, earned revenue and paid out its cost of operating the business.  Costs are everything from buying supplies, paying employees, liability insurance and all of the overhead expenses incurred in the operation. 

If a business isn’t producing profits, then it means that more money is being spent than earned. Businesses can’t go on very long when operating at a deficit.  

There are many opinions by experts about why a business succeeds or fails. I have tracked my entrepreneur graduates for years and the ones who have succeeded in business demonstrate certain skills such as the following:

• Target the right group of customers
• Stay informed about whether or not they have enough customers 
• Aware of their customers’ wants and needs
• Have a clear purpose of their business in writing
• Utilize an updated Business Plan
• Have written specific goals and objectives
• Keep abreast with their full operating costs
• Familiar with their specific business expenses 
• Adhere to their budget
• Accumulate data about their competitors’ strengths and weaknesses
• Aware of their own strengths and weaknesses
• Carefully calculated their prices and continue to sell at a profit
• Use effective leadership and management
• Stay involved in professional groups and the community 
• Bring in above-average profits due to exemplary planning
• Maintain the image of a “winner”