While we all wish we could predict the success of our business, it’s impossible to accurately forecast the seemingly random twists and turns you’ll encounter along your entrepreneurial journey. Some days you’ll be on the top of the world and feel like you’ve got it all figured out. Then, the next day, you’ll find out that you don’t know as much as you thought you did and get knocked down.
It’s how you deal with the emotional roller coaster and your willingness to get back up after you fail that will ultimately determine your success.
These simple signs will tell you if your business will succeed;
1. Has Validated Customers
Do you know in advance that you have customers who are willing to pay the price you are asking for the product or service you have? Too many good businesses fail to sufficiently validate their customer assumptions—or, in the case of internet firms, scale too quickly before validating the initial marketplace and streamlining their costs. A successful business scales its growth on the basis of proven, steady and paying customers (especially where residual/subscription income is involved). Steady acquisition is also a very good sign, as opposed to high and low fits and starts.
2. Shows a Strategic Perspective.
This is the direct opposite of a company that is operating in panic mode, or exhibiting survival thinking. A business actively planning and moving towards national and global expansion; that has a solid one- and five-year agenda and is making steady and measurable strides to meet the critical milestones is poised to succeed.
3. Is Cash Conservative
There’s never been a better time to start a business in many respects, but there’s perhaps never been a more challenging time to obtain early stage credit or funding. Today’s successful startups are a stark contrast to the high-flying internet firms who bragged about their rabid “burn rates” in 2000-2002. Lean operations are the name of the game, and the ability to stretch and conserve early stage funds, even if greater funds are available, is a significant sign that points to future success.
4. Operates with Transparency
Commitment, integrity and transparency are closely related. A successful organization has little or nothing (other than its proprietary IP) to hide. Life is simpler with fewer secrets about billing methods, pricing and customer acquisition strategies. It’s also easier to keep employees committed and fully engaged. The easiest way to avoid bad press is to live and operate each day as if everyone’s watching. He was right. Rarely does bad or embarrassing exposure occur when a company operates in a fashion that leaves nothing to be secretive or embarrassed about. Transparency of operation is a very positive sign.
5. Communication
Every great leader and every great company communicates well.They communicate good news. They communicate bad news, with candor and straightforward language, as well. They communicate with skill—imagine the frustration of the investor who knows he or she has invested in a great company, but due to lack of communication, the world may never know. No great company was ever conceived and grown in a vacuum. Every successful company recognizes the vital need and the tremendous opportunity they afford themselves when they communicate well.