As a business coach, I have had the distinct pleasure of coaching entrepreneurs and leaders about the latest innovations in business. Many entrepreneurs understand the value of this type of coaching and they go on to achieve extraordinary results. However, I am often troubled at the lack of value many entrepreneurs place on innovation in business. I believe it is vitally important for entrepreneurs to research and study industries and trends in order to continuously innovate.
If you want to create a thriving business in the twenty-first century it will require a paradigm shift. You cannot simply duplicate what the market is doing and expect to dominate. A term that twenty-first century entrepreneurs must embrace is sustainability. In fact, this word is at the forefront of my mind every single day in business. Sustainability is not about copying the competition but crushing the competition.
Sustainability is having the ability to outpace and stay ahead of your industry. Sustainability is about creating superior systems and processes that give you the edge in an ever changing economy. Sustainability is a secret to your business success.
You must have a business model.
I cannot tell you how many entrepreneurs have no business model. Essentially, when you do not have a model for your business you do not really have a vision. It takes more than great ideas to succeed in business. Business models lay the foundation and set the track for where your business is going. Without a clear direction your vision will die.
Ultimately, I encourage all entrepreneurs to write out five, ten and even twenty year goals for their businesses. While this may seem like an illogical instruction, it provides a much better framework and improves your odds of business success. It is important to understand that creating a business model is not just about writing down your goals.
A business model outlines objectives, strategic positioning and desired outcomes for your business. One of the reasons I experienced so much difficulty in the early years is because my business lacked direction. Without a strategic track your business will not survive seasons of turbulence. You need a clear plan for how operations will run, what your goals are and the strategic steps you will take to accomplish those goals.
You need systems in your business.
According to Entrepreneur Magazine, there is a major difference between goals and systems. Many times we get excited about a goal we want to accomplish in our businesses. However, without a system that goal will never be accomplished. Systems separate elite businesses from the mediocre businesses that cease to exist.
Systems are the outlined steps or procedures of how operations should flow within a business. A lot of entrepreneurs waste countless hours doing unimportant tasks. I have literally watched entrepreneurs waste entire days, weeks and months accomplishing nothing within their businesses. In fact, at one time I was so busy trying to do everything that nothing was getting done. It was at that point that I learned I needed systems.
When you find yourself frustrated and feeling unproductive, this is often an indication that you lack the right systems in your business. You should create established procedures for routine tasks. This saves you time and increases your productivity substantially. Systems have a profound impact on your bottom line.
Focus on your customers.
While this seems very elementary, you would be amazed at the number of entrepreneurs so busy building a business that they exclude customers from the business model. it is great to print your cards, design your logo, build your website, etc. However, it does no good to spend all your time on building a business that has no customers. Customers must be at the center of your business model and your daily objectives.
I always tell entrepreneurs that before you create marketing campaigns make sure that you have a market for your product or service. Entrepreneurs often go into business zealous but lacking wisdom. You must find a market for your product or service. Otherwise you are going to spend lots of money only to find that no demand has been created for your product or service.
You need to spend adequate time researching the market and evaluating the demand for your product or service. Without this critical step your business is destined to fail. Forbes reports that 8 out of 10 new businesses will fail. You have a much better chance of succeeding when you have a great understanding of your market, the needs of your market and your niche within the market.
Pillars are necessary for the preservation of your business.
Anytime I speak with entrepreneurs I bring up the importance of having pillars for sustainability in your business. You have to understand that it takes more than good ideas to be successful in business. It will take proper planning, strategic objectives, effective systems and customer-centered operations to succeed in business today.