We’ve seen high street businesses that seemed to be a permanent part of the UK landscape crash and burn over the past decade. Remember Toys “R” Us? Debenhams? Thomas Cook?
Amazing success stories have provided a stark contrast, including the online car retail business Cazoo, founded in 2018 and worth $8 billion by 2021 when it went public. And the renewable energy company Octopus Energy, set up in 2015, and valued at $4.6 billion by 2021.
So what is the difference between success and failure? Here are six factors that are crucial for any organisation to ensure it survives and thrives:
- Clear vision: The organisation’s long-term goals must be clearly set out. This in turn provides the foundation for strategic planning as well as direction and purpose. A clear vision is also necessary for clarity when communicating with employees, investors, partners and customers. A solid business plan that covers every angle from finances to marketing plans is vital.
- Pick a great team: The right people are the backbone of any business or organisation. Pick a team of people who share your values, commitment and vision. Make sure they have complementary skill sets and will spark off each other to inspire creativity and innovation.
- Never forget your customer: If you can’t deliver what your customers want, your business will fail. If you don’t move with the times and respond to evolving demands and requirements, your business will fail. If you don’t notice your competitors are offering more and better, your business will fail.
- Have a distinctive and consistent brand: All successful organisations nail this one. Think of any globally successful company and you’ll already have a picture in your mind of their logo and what their website looks like – from distinctive fonts and colours to tone of voice and imagery. Your brand says who you are and what you stand for; if you don’t know, your customers won’t either and they’ll go elsewhere.
- Create a marketing plan: This is a no-brainer. Consult a marketing expert if you need to because it’s imperative to get your story out there and in front of both customers and potential customers. Remember – this one’s a long-term commitment. Whichever online and offline marketing channels you use, ensure your marketing is regular, relevant and resonates with your target audience.
- Take control of your cash flow: running out of a cash is one of the biggest causes of business failure. You must have more cash coming in that is going out. It sounds very simple but can be extremely difficult to achieve in practice. Take control of your cash flow: create a cash flow forecast and don’t put your head in the sand if the financials stop adding up. The earlier you seek advice and/or create an action plan to put things right, the more likely it is that your business will survive.
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