Success comes through first-hand observation. The most successful entrepreneurs have worked in the industry in which they start their business or have personal experience and/or understand it firsthand. The top four things a small business/start-up must have in order to succeed are:
- A business must fill a need; once we find a problem and create a solution, we can fill that need. Demand for a product or service does not guarantee that the business will be successful. Before launching a business, it is wise to hire a business consultant to help assess overall risks and benefits.
- Understanding the products or services and problems in the industry helps avoid errors and gives the business credibility. The best option is to find an advisor/business consultant who can fill in the gap and can put their expertise into action. Consultants are able to offer specialized skills that can solve problems by bringing in a new skill set, allowing business to identify problems and opportunities. The end result is to teach a man how to fish.
- Start-up/small business owners don’t necessarily need funding, but you do need resources. Once we are able to determine the requirements, then the next step is to go out and find resources. Examples of resources would include finding free software, equipment, partnering with customers, and simply saving money with a home office. Most important, working with a business consultant can help avoid future costly mistakes and help tap into expert advice to grow your business.
- Having a sound business model can make a difference between success and failure. If the business can provide different sources of income, then you're one step ahead. The business model should include elements in an income statement, from revenue, costs, and gross margin to operating costs. A business consultant is able to analyze these numbers closely. The consultant gathers and analyzes the information in order to provide solutions and refocus strategies for present and future success.