There is a school of thought that almost one hundred per cent of businesses fail due to one main reason - the owner or management team. The highly successful have a fixation on three main things.
So this begs the question, "why do businesses fail?"
It is possible to hear a variety of reasons why the business has failed amongst conversations between friends in almost any pub in the country,e.g.the bank pulled the plug, the product wouldn't sell, couldn't keep the customers, a key customer refused to pay etc.
The real reason, however, is managerial incompetence - it is the management's job to look after the above, no one else's. It is common for many businesses to blame everyone else but themselves for the unfortunate situation.
Conversely, the majority of business successes tend to take full responsibility. They don't use victim language to describe their predicament - they watch, they decide and they take action.
So what are the three things that successful businesses focus on?
Strategy
Marketing
Teams
This does not suggest that other factors are ignored such as finance and product, but rather that these fields are isolated whilst the business makes sure it is good at the other stuff.
Business strategy
This is being aware of the external environment whilst forming your own plans of where you want to go. Part of this strategy may be deemed as the decision of where you want to be in one year, or three years and hence what needs to be done now.
Strategy may be seen as opportunity cost in economic terms, or trade-offs - you must decide what you want and what the consequences of that decision may be. It is not always possible to go for conflicting goals.
Strategic thinking is not easy but the clearer you are about what you are trying to do, the easier it becomes. Focus and simplicity breed success.
Marketing
A very misunderstood word in the business world; it is often misused, and given different meanings depending on the situation and our present mood.
Marketing may be deemed to be as seeing your business through customer's eyes. What problem does your product or service solve? Why should people buy from you? What benefits are you offering that your competitor does not?
In some cases, marketing is the same as communication. Marketing is about the selection of how and what you communicate to whom - the ultimate purpose of course is to win more of the business that you want.
Teams and people
Most businesses have people problems. It is a fact that as a business grows there will be additional pressures - to get more business, to do more work of a higher grade and inevitably - the pressure of working together which produces conflicts.
The raison d'etre of beginning many businesses is to get away from the traditionally organised organisations, with the irony being that most businesses require the very order and structure that they were designed to escape.
Thus successful teamwork requires the ability to motivate, lead and communicate effectively.
Often, the business's ultimate often seems to be about looking for the latest management fad and trying to use it to make the business better.
Good businesses focus on three basic things-teams and people, marketing, and strategy and planning. If these basics are not in place then the business will not be sustainable.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
How do i handle a supervisor who seems to have ...
By: employee224 | 27-10-2007
how do i handle a supervisor who seems to have singled me out by constantly writting me up for infractions? i have been in this dept for 4 years and never been wrote up by the former supervisors, this man comes into our dept and has written me up 4 times. in the past all my evaluations have been exemplary. due to the 4 write-ups i am now on a three day suspension, if i receive one more write-up i will be terminated. this has caused me undue stress, i.m afraid to breathe the wrong way around this man.
Loans vs private equity
By: kugarand | 19-10-2007
When is it better to take out a working capital loan vs getting investor capital?
Which is the best social networking site for ...
By: Or-Tal Kiriati | 17-10-2007
Which is the best social networking site for business purposes?
What is the European City Model?
By: pinklily21 | 15-10-2007
I need to know about the European City Model.What is it? Who designed it?
Fox Business Channel
By: drowssorc | 15-10-2007
Are there any other major business dedicated channels, other than the new fox business channels?
Name for a hot new bar openin up.
By: megan.padilla | 09-10-2007
I am going to open up a bar/sports bar within the next year, and i was wondering if any of you had any ideas for naming my bar? We will be open in the afternoon for football and food, and at night it will be more of a night club than a bar, or at least thats what i'm trying to do. . . any name ideas for my bar would be great. I really would like it to be an unforgetable name, that everyone will always want to go to my bar. Thanks.
Q&A Powered by:
Latest Business Articles
Getting to Know More About Microsoft Business Software
By: Bei M. | 21/08/2008
There is no denying that currently, Microsoft Corporation is the world's biggest and most popular developer, designer, and maker of the most reliable computer programs and applications. Since its launch and the initial introduction of its first software, the company has never left the focus and minds of computer owners....
Develop a Better Business Model Faster by Analyzing Past Performance as Though These Were New Tests
By: Donald Mitchell | 21/08/2008
Past successes and failures show clues concerning opportunities and hurdles for creating superior business models. Learn from those experiences.
Secret Wholesale List Suppliers: Exposed!
By: Joaquin Reveron | 20/08/2008
You have a business. You need a wholesale list source to expand your product line and surely for possibilities of profiting more from the acquirement of wholesale products from such suppliers. Precisely, one of the easiest ways to get a source contact list of distributors and wholesalers is by hitting...
Wholesale Video Games: Extreme Infamous Tactics!
By: Joaquin Reveron | 20/08/2008
Let say that you have a successful wholesale video games accessory and your back up is your affiliated company that offers DVDs. Pay attention, this is one of the tools many of us on the top use to beat many competitors, make competitors paralyzed and not even make them think...
6 Reasons to Start a Drop Ship Baby Gift Ecommerce Business
By: Stuart Sherm | 20/08/2008
Starting any Ecommerce business is a daunting task, but here are some ideas where you can make money, have virtually no overhead and never leave your home. What you need is to join a great drop ship gift program.
Essentially you are aware that when you buy certain gifts online they...
Why Not to Start a Wholesale Video Games Business!
By: Joaquin Reveron | 20/08/2008
Many people tell you how lovely it is to start a home business, how magnificent it really of having more time with their family, kids, friends and plainly and enjoying what life has to offer with the extra time from a home office. It is true, it is fascinating,...
Do You Really Need a Job or Feel Maximum Incommodity?
By: Joaquin Reveron | 20/08/2008
Noting that many of our culture and society dislikes incommodity, incommodity according to most dictionaries is defined as inconvenient. Generally incommodity is logically and truly defined as something that causes that causes difficulty, trouble, or lack of ease. Society is indeed correct when it comes to its definition, however, you...
Top 10 List of Wholesale Business Tools For Success
By: Joaquin Reveron | 20/08/2008
What tools to succeed with an online business? Before you start with the list of wholesale business tools that you will need for starting your business online, know what kind of business you are getting into. Before thinking of the list of wholesale materials that you should get, one of...
More from Naz Daud
Learn Why Starting Your Business in a Home Office is More Efficient
By: Naz Daud | 15/08/2008 | Business
When you're starting a business, and you don't have substantial levels of capital, then the chances are that you've considered whether you should start the business from home or get yourself an office. In this article we take a look at the advantages of waiting as long as possible before...
Key Business Advantages to Being Small
By: Naz Daud | 15/08/2008 | Management
As a small business, you have many disadvantages over bigger players. You have less money to play around with, perhaps less in-house skills, and you won't have as much power when it comes to negotiation either. Although there are certainly disadvantages to being a small business, there are also benefits...
Business Management: Key Skills of Great Managers
By: Naz Daud | 15/08/2008 | Management
Managing a business requires a wide range of skills and experience. All managers will have things that they are good at, and things that they are not. In this article I will examine the key skills that you should look to develop as a manager, and, if you're an employer,...
Achieving Your Business Goals Through Successful Negotiation
By: Naz Daud | 15/08/2008 | Management
When trying to achieve your business goals, being skilled in negotiation can work strongly in your favour. Whether you would like to win a new contract to drive revenue for your business; work with a supplier to reduce your costs and increase your margins; or work with a problem customer...
Advertising Your Business on the Internet With an ROI - Driven Mantra
By: Naz Daud | 15/08/2008 | Marketing
Business owners are consistently finding that the internet can be a highly effective marketing channel. Not only is it easy to track how effective your marketing is, but you can also use that data to consistently streamline and improve how you invest in that medium. On the Internet, it's also...
Keeping Your Business Customers Happy
By: Naz Daud | 05/08/2008 | Management
If your business has unhappy customers, or you are looking for ways to make your customer service even better, there are some simple things you can do to improve. In this article we look at easy ways that you can make your customers connect with your brand, become loyal customers,...
Internet Business Ideas You Can Run From Home
By: Naz Daud | 05/08/2008 | Business
There are many internet business ideas that you can run from home. The problem is that unless you are willing to try and try again until you find something that works, chances are that your quest will be a waste of time.
Even if you have a great idea, there is...
Building a Formidable Business Brand
By: Naz Daud | 05/08/2008 | Marketing
Developing a cool business brand isn't as easy as you would think. You can throw money at some problems, and they'll get fixed, but branding is different. You have to think outside the box, and be innovative, if you want to build a brand that'll stick. In this article let...
Business 
