This content has been supplied by the productivity experts – ViAGO International and written by their team member, Matthew Collins.
Key success factors are strategies that are critical to growing and maintaining a successful business-customer relationship. However, many business owners do not take time to identify what is necessary to be successful in their industry or business. The key success factors of a business are not generic ‘one-size-fits-all’ strategies that can be copied and pasted, but there are some elements common to many successful businesses.
Most businesses usually have three-to-five key success factors that they need to focus on in order to achieve their goals, and create a stronger relationship with their customers. We will examine five key success factors that are typical of most businesses. Think about how you might apply these to your own business!
Have the Right People
One of the most important key success factors in any business is having a team with the right ‘mix’ of talents, knowledge, skills, and experience. Your team is what helps differentiate you from your competitors. Not only is it important to have the right people in your business; you must also have the ability to effectively manage people. This is not as easy as it might sound! It requires finding the right balance between providing firm, but fair direction and guidance, as well as encouraging growth and personal development in your people.
Research Your Product or Service
Not only is it vital that the product or service you provide is of the highest quality; you must also ensure your product or service actually meets the needs of your customers. Finding this information out is not difficult as most customers are happy to provide feedback to let you know what they want. Once you have received the feedback, and have a greater awareness of the need or want your product or services satisfies in the specific market you are operating in, you can then create a new product or service, or improve an existing one!
Retain Your Customers
In business, the 80-20 rule asserts that 80% of your business will result from 20% of your customers. You can see why it is so important to identify your most productive customers and exert your effort into making sure to make these customers the priority, so that you retain the business of your top customers! One of the best ways to retain your customers is by providing an enjoyable, rewarding, and personalised experience.
Some ideas of effective ways to retain your customers include:
- Offering a subscription service.
- Adopting a referral programme.
- Implementing an e-mail marketing campaign.
- Building a loyalty programme.
- Designing a convenient shopping experience.
- Creating a strong brand identity.
Reduce Overhead Costs
The objective of any business should be to reduce its overheads. One way you can achieve this is by reducing your regular energy inputs (e.g. electricity usage) and waste outputs (e.g. rubbish collection). Other potential options include cutting back on unnecessary equipment and supplies and sharing an office space.
Managing Your Cash Flow
One of the keys to success in any business is managing cash flow correctly. This is especially important when it comes to finance. Having cash on hand means it is likely a lender will see this as evidence of your ability to balance your books and maintain a profit and are more likely to approve your finance request. Cash on hand is also important for the times in which you need operating capital, but cannot get approved for finance.
When you understand and begin to use your key success factors in your business, they will become a part of your brand and daily life. For some other quick tips about how to run a successful business, try visiting our website for productivity improvement skills.
Matthew Collins joined ViAGO International in 2018, and spends most of his work day editing content prior to submission for publication. He is passionate about the tools ViAGO International uses to help business owners and managers transform their business ‘from Chaos to Calm.’