A much debated topic is what are the most important elements of a successful company. You can try to Google it, like I have done. You will get many different lists, each one listing a number of things. From my experience, the following three are the most critical to success.
Business model. The plan implemented by a company to generate revenue and make a profit from operations. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs. Two companies in the same industry, can have the same business model. BUT, to be competitive every company should have a different business model. So there are major opportunities in delivering essentially the same product, to essentially the same market, using a different business model. HOW you go about offering a service or product could (or rather should) be different, and preferably unique. Richard Branson is taking on major companies, by merely changing the way he offers customers need-satisfying services or products. Virgin Airlines operates on a unique business model. Yes, they still fly passengers from A to B, using essentially the same planes, but they do it differently. Their staff has a refreshingly, user-friendly attitude (compare it to the state-run airlines), their seating classes are different, catering for different needs (and price classes), they add unique services such as limousine pick-up, etc.
The jockey (also referred to as the A-team by The Perfect System). I honestly believe that if you do not have the right person (or team) heading a company, you have NO chance in hell to make any success of any business – even if you have zillions of Rand and a great business model. To prove my point – just look at the state-run utility and transport companies in our country. Appointments are usually politically biased, instead of appointing the very best business person. And if they get it right now and then, then a government department interferes till they break it. I will not mention names, but a certain state-run airline in SA is a great example. The head of any company, usually the CEO, is critical, no imperative, to the success of a company. If you have the wrong person heading the company it WILL fail. And what about the senior team heading the company? They are as important, but will soon become contaminated by a toxic CEO. They will either become passive (read incompetent), or leave the company in search of an environment where serious debate, intelligence, solid business principles and common sense are not just tolerated, but valued, appreciated and nurtured. Of the three success element discussed here, I believe the jockey is the most critical and the most difficult to get in place.
Money. Many would-be entrepreneurs state a lack of money as their major obstacle. But as long as they keep on crying, they will remain just that … would-be. Although this IS a critical aspect of success, this is also the easiest and most simple to overcome challenge. There are MORE money available than business opportunities. Maybe I should clarify business opportunities. I am NOT referring to business IDEAS, but to OPPORTUNITIES. An idea is just that – an idea. Synonyms are schemes, scams, unrealistic dreams, etc. They should never be entertained. Business opportunities are not necessarily unique, way-out or high-tech. An opportunity is where a customer need can be satisfied at a profit. Any need that is satisfied WILL generate money, as long as, of course, the correct business model and jockey are in place. Money can be sourced from many places if a great sensible business plan / proposal is developed and presented by the right person. And provided that the right jockey will drive it. More about sourcing money for your business opportunity in a future post.
In order for a business to succeed, you need the following – a differentiated business model, the right person driving it and enough money to sustain the operation and enable growth. Failing to have all three in place, you do not risk failure – no, you are GUARANTEED failure.