Why a Business Succeeds

In my previous article I discussed reasons why businesses fail. Wouldn’t it be nice to know why businesses succeed? Let’s see why…

Characteristics of Successful Business Owners

There are certain qualities successful entrepreneurs share in common. Some types of people are more suited than others to go into business for themselves, but I am a big believer that one who naturally doesn’t have the typical entrepreneurial characteristics doesn’t necessarily mean he or she won’t be a success. However, knowing these entrepreneurial commonalities can give you an idea of your propensity to be a successful business owner:

1) Desire Independence
2) Strong Sense of Initiative
3) Motivated to provide for family
4) Expectation of Quick and Concrete Results
5) Ready to act and react quickly
6) Very dedicated to the business
7) Entered the business as much by chance as design

The Entrepreneur Test

Below are 20 personality traits to gauge your potential as an entrepreneur. On a scale of 0 to 7, with 7 the highest, rank each personality trait:

1) Ability to Communicate
2) Can Motivate Others
3) Organized
4) Accepts Responsibility
5) Can adapt to Change
6) Decision-Making Capability
7) Have Energy & Drive
8) In Good Health
9) Good Human Relations Skills
10) Have Initiative
11) People Person
12) Good Judgment
13) Open-minded
14) Planning Ability
15) Persistent
16) Resourceful
17) Self-Confident
18) Self-Starter
19) Good Listener
20) Risk Taker

Scale:

110-140 Very Strong
85-109 Strong
55-84 Fair
54 and below Weak

As an entrepreneur myself, I tend to be on the strong side of these traits. But not every successful business owner is strong in every one of these areas. This is why successful entrepreneurs’ recruit those who are strong in the areas they may be weak. If you are a hard worker and have the drive to be on your own, then over time you can develop and work on improving these useful skills.

We have discussed reasons why businesses fail and what are the common traits of successful small business owners. Wouldn’t it be nice to know some of the reasons why certain small businesses are successful? It is important to know what not to do as it minimizes mistakes, but being proactive and knowing what to do can significantly increase your chances of success.

What Leads to a Successful Small Business?

– A Good Business Plan

Going off what I said in the previous article about business failure due to inadequate planning, it is absolutely essential to have a good Business Plan and good planning within your business. What’s the distinction? You can develop a good business plan, but if you don’t implement it and make it a part of the fabric of your business, then its usefulness is minimal. However, to develop an effective Plan, you need to have a good business planning system to employ, and it is often very helpful to work with an experienced Business Consultant in its design, development and implementation.

– An Adequate, Well Defined Market

Market Research is critical as it gives your planning a dimension of predictable results. It links your Product Development with your Strategic Plan.

– Understand Industry & Market Trends

Understanding both where your industry and market are heading is important to staying competitive and continuing to meet your customer’s needs. Never assume you have captured your market and can sit on your laurels. Install Marketing Systems in your business to continually analyze and predict customer and market behaviors and needs. Having consistent contact with your customers can help you produce better products, offer better suited services and grow along with your trending market.

– Obtaining and Using Accurate Information

Accuracy in planning market trends and business growth must be reliant on information that is accurate and realistic. Then taking that accurate information and applying it to your present and future business capabilities is an important process. You must be realistic as to whether you can effectively exploit the potential of the information with your given human, operational and financial resources.

– A Good Capital Acquisition Strategy

It is important to come into a business with a strong equity position. You can then leverage off that cash strength with competitive, appropriate financing. A cohesive Financial Strategy, and implementation of it, is vitally important to a business’s success. A business needs not just adequate capital, but the right type of capital for the business, its goals and objectives.

– Effective Recruiting and Strong Human Resources

Going into business with the right people and subsequently recruiting and retaining good people is vital for a business’s success. Often a talented, experienced, highly-skilled employee will save you money in the long run and be very effective in a crisis; as compared to, scrimping on your labor costs, having to constantly train new people, relying on more people to get the job done and experiencing high-turnover and low employee morale.

– Expertise and Experience

From the Company’s Founders and Principals to the employees in the field, a high level of experience and expertise is necessary to effectively compete in today’s markets. The most successful entrepreneurs, bar none, are those that surround themselves not just with talent, expertise and experience, but have people on their team which fill the gaps in their personal experience base. We are only as smart and talented as those we surround ourselves with. Know your limitations and have the right people on board to fill the gaps.

– Understanding the Implications of Government Regulation in your Business, Market and Industry

Being surprised by changing regulations is not good. Keep yourself well educated on Government Regulatory Trends through good government relations and active membership in Industry and Business Associations. The efficacy of your product, service or market can change 360 degrees on the whims of government. So be involved and cognizant of this significant element.

– Effective Time Management

A small business owner is pulled multiple directions at the same time all day long, every day. Your ability to multi-task is important, however, putting systems in place to effectively balance tasks and time is just as important. Delegation and planning are essential in effective time management. As pointed out previously, you must have good people around you to delegate responsibility, as well as, to assist you in managing your time as effectively as possible. Effective Time Management is a function of good planning as one comes with the other.

– Hard Working for Long Hours

Last but certainly not least, Successful Business Owners must be willing to work very hard and spend many long days and weeks getting the job done for their customers. The Entrepreneur is often the first one to arrive early in the day and the one who leaves late in the day or night. Having a good Business Plan helps the successful business owner to work “smart”, but there is no way around good old fashioned hard work, particularly in the early stages of a company’s growth. You must be willing to put in the long hours to reap the benefits of self employment.

Concluding Advice

If you are contemplating starting a new business, do something you really love to do and have a passion for. The work is hard so you might as well enjoy it. Providing a great product or service to your customers is a worthwhile experience and should be something you really believe in. Passion is what carries you through the inevitable rough patches, no matter how well you plan and set up your Company. Small Business is simple: see a need and fill it. Working hard will be replaced with working smart as you build your Company over the years, gaining invaluable firsthand knowledge. You will find, though, as your Company matures, the real thrill for an Entrepreneur is the start-up phase, when you build something from scratch and do it successfully. Good luck in your endeavors.

Home Based Businesses – Starting a Home Based Business – Trials and Success Pathways

To get started a business at home you will need good business ideas or options available. A great idea or opportunity that is definitely well looked into, formulated, and implemented can propel your success to impossible heights.

Governments throughout the world are working hard to renovate the global economy, but on top of that we can’t sit still and wait for our governments. We will need to take matters into our hands to safeguard our financial futures.

This content is focused at those who wish to solve their financial problems by starting a home business enterprise. Also, it is directed at those who have already tried but they are getting nowhere – they want to restart on guaranteed pathways.

Setting up a home business enterprise can be overwhelming because there are way too many options, traps, deceits, and betrayals in the way. Fortune emanates from following a carefully worked out success pathway through this jungle of opportunities and threats.

This short article discusses:

1. The problems and risks of starting a work from home business.
2. The personal qualities you will need for success at a home business.
3. What you should be doing to get going in your home based business.
4. The spectacular perks you may expect from a work from home business.
5. The different start-up options and solutions open to you if you embark on a work-from-home business.
6. The tools and procedures you should have for good results in your home business enterprise.

The rush of people to the Internet mean that it continues to make sense to begin a home business. So, many newbies are joining the work from home business bandwagon.

Virtually all come with impractical expectations though, thinking that you can do little work for explosive pay. While it is true that we have less cumbersome as well as more painful approaches to generate business from home success, it’s false to think that one could make a nice income without work.

This article examines several problems that a newcomer will face and exactly how to conquer them.

With the world currently steeped within an economic crisis of large proportions the subsequent questions become significant:

1. How must we manage individually with this worldly situation?
2. Can we, acting independently, change such mind boggling negatives into positives?

While governments all round the globe seek to handle this crisis, we must make a move for ourselves both individually and collectively. One positive method of achieving this is to set about a home business start-up.

The online world is growing annually as more and more men and women explore it to look for information and purchase goods and services.

All the time a lot of us, like you and me, make the decision to get started on a business at home, yet not everyone find themselves succeeding at it. Many struggle and give up after a few years, while others come through with different levels of achievement.

The matter with starting a home business is that there is excessive hype and a great number of lies encompassing the process. The online market place is brimming with dishonest artists aiming to make a quick buck, and it is easy to fall prey to these people.

Their common tactic is to convince you that you can easily earn money on the web. A number of get-rich-quick schemes have been enacted via the internet and these schemes are very luring to beginners.

Who doesn’t want a fast way to become rich, anyhow? Isn’t that the smoothest approach to financial freedom? In spite of this, with anything that sounds too good it is certain that there’s a catch.

The individual who’s endorsing or selling a get-rich-quick scheme is after your hard earned money, and the thought of getting rich quick (with no effort at all) is the speediest way to convince a beginner to order.

This tactic only works best for newbies, and yes it works until the newbie grows up to recognise that there’s no quick method to generate a profit (unless through fraud or you win a lottery).

The thought of acquiring sales by making get-rich-quick promises is really a scam. It’s a scam because the seller makes money by deceiving the buyer. The conventional rookie will move from one get-rich-quick scheme to another until he or she gets the message… that it’s a fraud!

The newcomer then gives up in discouragement, or continues to look for the fundamental truths of business at home success. If you’re a rookie and your first port of call is this article then you are a fortunate newcomer.

This information should certainly take you out of the hands of the many get-rich-quick thieves out there who infest the net. It’s going to steer your time and effort along the best path to work from home success, so that you don’t waste your cash through dealing with Net crooks.

In conclusion, starting a business from home needs useful business ideas or options, and this exceptional idea or opportunity that is well investigated, created, and implemented can push your success to unimaginable heights.

Two or three things you must realize:

* You’ve what it takes to ensure success at your work-from-home business.

* A lot of people who started a business from home have excelled, and these folks are not gods.

* Everyone who undertakes a major project like a home based business starts out uncertain, scared, shy, and overwhelmed. So you are not alone!

* As you work on your home based business, you will grow psychologically and intellectually. This will drive away your uncertainties and concerns. You’ll become self-assured and in control.

* When you’ve finally got there and you’re making the cash you wish from your home business, you’ll look back (like others have) and wonder why the trail couldn’t be straighter. But again that’s life! It’s always easier to be smart after the fact.

To round up, this article deals with the following topics:

1. The issues and dangers of starting work-from-home business.
2. The personal qualities you’ll need for getting good results at a home business.
3. What you ought to be doing to get going in your home business.
4. The spectacular benefits you can expect from a work-from-home business.
5. The several start-up options and solutions available to you in case you embark on a home business.

Unfortunately, owing to limitations in space, we cannot possibly cover these topics in full in this article. You have a bright future ahead of you. Yes, a bright future awaits you! No matter how helpless your circumstances are, a bright future awaits you. No matter how troubled you are, happiness stands on your path. No matter how fearful you are, courage awaits you. No matter how demoralised you are, confidence awaits you. No matter how much you cry, laughter is on your way. No matter how angry you are, peace is coming to your soul. Yes, you do have a bright future ahead of you!

Dr A A Agbormbai has been building his home business since 2006 and has a wide range of accomplishments and experiences in this area. His articles bring his insights to you to help you succeed online. Previously, Dr Agbormbai was a Senior Lecturer of Information Systems and Information Technology at a private university college in London. He has a PhD in Aerospace Engineering at Imperial College London, specialising in Spacecraft Aerodynamics. He has also worked as a Research Fellow in Fluid Dynamics.

Things to Consider Before Buying a Business

There is constant debate which runs in an Entrepreneurs’ mind whether to start a business from scratch or acquire/buy an existing business. There is no straight answer to this. Much depends upon entrepreneurs own personal background, understanding of interested sector/industry and experience of running a business. To add to his confusion, there are numerous businesses for sale available in majority of the market and in most of the sectors/industries.

Let us look into the clear advantages of buying an existing business:

• You can begin running the operation immediately which saves you time and energy
• Proven business model with established customer and clients
• Existing Goodwill (For Positive, you might have to pay a higher premium) and established brand
• Less difficulty in securing financing, as lenders prefer businesses with a track record
• Experience and trained employee could be a huge advantage ( To be negotiated)
• Built and developed infrastructure like building, office, computers,distribution networks
• Developed Policy & Procedures with system and processes in place
• Immediate cash flow starts as a reliable income (if the business is profitable, otherwise you might have to put in additional cash)

Before you contemplate buying a business, you should first deliberate on what is the right business for you to buy. You could hire a consultant or an advisory to do the work for you but it is strongly recommended that the entrepreneur does his own research on the business he wishes to buy. There is no substitute of ones own research and the process itself is invaluable as it would set up your mind of various business and environment that influences the business. Apart from the obvious economic reason for acquiring (this is also true for starting up fresh); there are couple of questions which the entrepreneur has to answer himself. Does the intended business excite him/her? Is s/he passionate about it? Would it give him enough incentive and drive to wake up every morning to deal with various challenges and issues that come up in running a business? Unless the answers to these questions are in affirmative, you should do a rethink. Do not settle, keep looking till you find a business you will love running and you care deeply about. This would keep you motivated and focused even in most challenging and trying times.

Once you have identified a business to buy, you should do a comprehensive due diligence before you sign the purchase agreement. Things which look too good to be true should be given careful scrutiny. If you think your judgement could be biased, get your friend, spouse or anyone who could give you an honest and third party opinion. They might raise questions or issues, however small it might be, which might not occur to you.

There is no substitute of getting sound technical and legal advice on the business you wish to acquire. If possible, try to speak with sector specialist or do a comprehensive research on the sector or industry you wish to acquire. You might end up buying a business which has lost its steam and does not have product and services to meet the new demand of the market.

Buying a running business might work well with someone who has prior experience of managing a business. A would-be-entrepreneur who is just decided to get into business for the first time might have a difficulty running it. It helps to start up from scratch then, because you would then follow a natural learning curve which comes with building an enterprise. Nevertheless, if you plan to acquire a business, it would not be a bad idea to team up with someone who has an experience of operating a business.

The job does not end with buying a successful and profitable business but to take in forward in the ever changing environment. This would require not only personal commitment and dedication but sacrifices in various aspect of your life. And you should be prepared for it. Your family and friends may not be directly involved in the business but you would need their constant support and understanding to make your professional and personal life rich and effective.

If you looking to buy or sell a business or raise capital for your business or venture, visit [http://www.mergerstreet.com].

Mergerstreet.com is an online market place for entrepreneurs, business owners, investors, investment bankers, consultants and brokers seeking to “buy or sell a business” or to “raise capital for a business or venture”. It offers a secure, safe, effective and neutral environment for business transactions, while maintaining the users’ confidentiality and business privacy.