What are the key success factors for a company?
Which causes of success or failure of companies?
What makes a business successful?
Whether small or large, a company is a complex organization that operates according to its own rules, while being dependent on third parties and its environment: customers, suppliers, partners, state, markets …
The success of a business depends on a very large number of criteria, the importance of which can vary according to the nature of the activity, the size of the structure or the competitive intensity. The challenge is not to get lost in these parameters and get back to the basics of what makes a company successful or unsuccessful.
The business creator and the leader must take a step back to analyze their strengths, weaknesses, and identify opportunities; this exercise should be conducted regularly, with the utmost objectivity.
Here are the 9 key factors of success of a company which, combined, will pave the way for success!
1) A good product.
Having a good product is the first key success factor for a company. This consists in proposing a product, a range or an assortment meeting the expectations of the customers, attractive, qualitative, effective, easy to use or to consume. Offering a good product makes it possible to satisfy the clientele and thus to build loyalty, or even to trigger word of mouth.
The best way to design a good product is to conduct a market research, in order to understand the motivations of the customers. Click to read our 8 best methods of market research.
Having a good product also means offering related services:
after sales service,
insurance or guarantees …
Propose a good product will have “good customers”, loyal and solvent. Note that it is recommended to regularly measure customer satisfaction through satisfaction surveys.
Finally, a good product is a profitable and future-oriented product, that is to say a product that is the subject of regular adjustments, or even research and development efforts to guarantee a long-term competitive advantage. .
2) A good price.
The product must be offered at the right price. The price-quality ratio is one of the first criteria for choosing customers. The price positioning must be determined according to the competition, the psychological price (quality perceived by the consumer) and the financial needs of the company (need to be sufficiently profitable given the fixed and variable expenses).
Here again, market research is essential, especially competitive analysis.
3) A good location.
The quality of the location is a key success factor for businesses open to the public. Attendance may indeed vary greatly depending on the geographical location chosen.
A good location is a location that captures the flow of customer-target, which is easily accessible, attractive, visible, well exposed, but also large enough and easy to arrange.
4) Good communication.
Another essential success factor for a company, good communication can attract customers and especially the heart of the target. To be effective, the communication must be coherent with the spirit of the company as well as with the expectations and habits of the customers:
communication on the internet,
direct marketing (canvassing, e-mail, phone, mail, brochure …),
events and press relations,
or “network” communication.
The most difficult will be to measure the return on investment of the various communication operations, something that most companies are unfortunately unable to do …
5) A good organization.
The quality of the organization is a key success factor essential for any business or organization. The organization is indeed at the heart of the economic model and the efficiency of the company: a good organization will result in delivering a good product at the best cost, which will both satisfy the customer and limit expenses. We are here at the heart of the economic, human and financial balance of the company.
By organization, we mean:
the definition and distribution of tasks / functions,
the definition of production, decision and support processes,
the choice to internalize or outsource certain tasks or functions,
the use of information systems (computer science).
The organization is about the internal life of the company, but needs to be customer-focused to be effective.
6) Quality equipment and facilities.
The quality of equipment, tools, premises and facilities is an important factor in the company’s success. Customers will be particularly attentive. The company will gain credibility and productivity. This requires investments, if possible properly sized and whose profitability should be anticipated.
7) Effective staff.
The ability to recruit, manage and retain quality staff is another key success factor. Indeed, the company runs with its staff and skills, experience and loyalty.
Human Resources Management is at the heart of the organization; it requires a special know-how and a lot of time spent in management, training, internal communication, motivation … Not to mention the need to master the labor law.
8) Good partners.
The success of a company is also measured by the quality of its partners:
suppliers of finished materials or products,
external service providers, including the accountant, the insurer, the lawyer, the management consultant, the graphic designer, the press officer …
The use of external partners is justified whenever this leads to greater efficiency, reduced risk and savings compared to internal solutions. The most difficult is to identify the right partners, and avoid any appearance of dependency over time.
9) A good entrepreneur.
What is a good entrepreneur? He is not a superman but a man or a woman who knows his qualities and his faults and who seeks to improve himself.
The “good” entrepreneur is one who:
- can listen to his environment and detect opportunities
- believe in himself
- has a strategic vision
- knows how to stay lucid
- is perseverance and patient
- is resourceful
- know how to surround yourself
- knows how to decide and manage priorities
- knows how to manage his time and money
- has the commercial meaning