Have you ever wondered why some businesses succeed while others fail?
Research done in Australia from 2010 to 2012 by the Griffith University’s Asia-Pacific Centre for Franchising Excellenceshows us attributes commonly found in thriving businesses, as well as characteristics generally present in failing ones. Businesses can all learn from the results of this research.
The methods followed by struggling organisations can be avoided and the best practices adopted by succeeding ones replicated.
Below we share some of the key findings from the research, as well as several learning points every business can glean from them.
Most owners of struggling businesses were motivated into starting an independent small business or franchise opportunity as a ‘way out’ of a possibly bleak financial future, or as an alternative to not having a job or income.
Lesson: Evaluate and reframe your motivations – There is a big difference in doing something to avoid an outcome as opposed to doing something to achieve a goal. Look at your venture or franchise as a medium that will allow you to achieve goals and passions rather than avoiding grind and uncertainty.
The methods struggling businesses implemented leaned towards following practices to sustain and save the enterprise from possible downfall, not on generating ideas and strategies to make them succeed.
Lesson: Don’t limit your enterprise. Set high goals – In order for the business to succeed, don’t be content with just making ends meet. Your goal should not be just about making it survive, but growing it to reach unprecedented heights. Strive to see a good ROI and make your venture highly profitable. Once you have established the company, consider expanding it and opening branches in different locations, or franchising your business to eligible applicants. This would be a great chance for growth.
Most of succeeding businesses showed greater levels of adaptability.
Lesson: Adaptability is the key to success – For a business to thrive in the market, it is important to adapt to the ever-changing times. The economy is just one of the many unpredictable factors that can affect your business. Work to make it flexible to all types of changes.
Before venturing into a business, successful owners had considerable knowledge about the industry. They acquired this from personal experience or consultation from family, friends or third-party sources such as lawyers, accountants and other industry experts.
Lesson: What you know makes a difference. Industry knowledge is very important – To make your business succeed, it is vital that you arm yourself with the essential knowledge and skills to be an expert in your industry, whether you are still starting a franchise or are already in one. Don’t be afraid to ask for help. Work with industry experts to assist you in gaining the needed knowledge that will allow you not only to survive, but thrive in the market.
Achieving success doesn’t happen overnight. Even the world’s largest business empires didn’t make it to the top so easily. But with skill and determination and by learning from the successes and failures of others, running a thriving enterprise can’t be far behind.