7 Success Factors For Starting a Business

crucial success factors for a hospitaility businessPicking the right niche is important when you are starting a business.

Maybe you should consider the entertainment niche and particularly hospitality, which is a major industry niche around the globe.

In fact, in the private sector, the hospitality niche ranks as the biggest global employer providing a variety of opportunities in various fields including travel, hotels, leisure, cafes, cruising and restaurants. That is why it is a great sector for starting a business.

Here are 7 critical success factors for starting a business in any niche.

Critical Success Factors for Starting a Business

1. The Right Location

Location has always been important and it is no more important than in the entertainment industry. You need passing traffic, ease of access and a safe environment. Competition is good but too much competition makes it difficult, particularly when it is hard to differentiate.

2. A Practical Business Plan That is Simple and Clear

Your business plan helps you operate the business. It is also a vital tool to convince banks and other investors to financially support you. It needs to be realistic so you can achieve the results, simple so it is easy to follow and clear so you know exactly what needs to be done to put the plan into action.

3. A Well Reasoned Marketing Strategy

You need a point of differentiation for your business. Why should potential customers choose you above all the other options available to them? Who is your target market and what marketing initiatives are they likely to respond to. Options include PR, internet advertising, off-line advertising, networking, sponsorships together with other marketing campaigns to get your brand name known to attract customers. You want long-term success and that is why a good marketing planning is so important in achieving that.

4. Make Sure You Are Not Under-Capitalized

Starting any new business can be capital intensive. In hospitality it can be even more so. You will require a significant amount of capital whether your start a completely new business or take over an existing one. So planning to ensure you have enough start-up capital and working capital is important. That is also where a good business plan comes into play to help you attract investors or commercial funding.

5. Customer Service that is Nothing Short of Exceptional

Make sure your team members are well trained, polite, and flexible in fixing issues that emerge with customers. Customers remember exceptional service and it keeps them coming back. Poor service is also remembered and even one experience of poor customer service stops people coming back. People who experience poor customer service also tend to spread the message a lot more than those who are happy, so it is an ongoing key task to ensure customers are delighted with your service.

6. Pricing and Positioning

Positioning is all about how you want the customer to perceive you. Do you want to be value for money? The cheapest? The most expensive? The most entertaining? Once you have determined that, you then set your pricing in accordance with your positioning.

7. Look After Your Staff Well

Your people are the most important ingredient of your business. We have talked about customer expectations and the need for exceptional customer service. It is important that your staff like working for you and can tolerate and excel in those tough occasions that inevitably come with customers today. This is much easier when they know you appreciate them and their work.

So consider these seven success factors as you commence a business.

Good Business

Good business tipsThe concept of ‘business’ generally has the capability to transform the economy of every person and every nation. However, there are factors that are key to success, and, when well managed, can turn a small business into a dynamic success.

Here are some of those important factors:

Good planning

Your business plan is a key to success. It therefore needs focus and time to benefit the company. Many small businesses owners do not plan properly which often results in business failure. Planning is a continuous process that adapts to changes in the marketplace or business environment. A business plan should also review your strengths, weaknesses, opportunities and threats and guide you through the challenges you are likely to face.

Good cash flow management

Cash flow is a necessity in keeping the business going and a lack of cash flow causes rapid business failure. Good management of cash flow therefore plays a critical role in the running of the business.

Good employees

A new business soon needs assistance in order to meet the needs of customers. This usually means adding employees to your business, who are reliable, loyal, honest, creative and motivated. When you find good employees, you need to reward them well and build good relationships in order to keep them with you.

Good interactions with customers

With customers you do not have a business so they are a key to your success. To attract and retain customers you need a good understanding of their needs. You should then align your products, services and communications to their needs.

Good Advisers

Good advisers who are experienced with your industry are gold when it comes to helping you with your business.

Good Focus

Focus is important. Many businesses find themselves in financial trouble because they are not focused on the right things and disciplined in the chores such as invoicing customers and following up outstanding debts.

Good Drive with Good Patience

Desire to succeed is a key attribute of entrepreneurs. Passion and desire can deliver the drive that is needed for success, but it is unusual to start a business one day and see it become a multi-million company the next. Patience is required in growing the business. Failure can result from being too hasty and making poor decisions.

Bear these factors in mind as you embark on the road to business success.