Did you ever wonder why some startups make it but so many others fail? If only there were a magic potion you could drink to give you all the answers. In the meantime, author Simon Sinek suggests that you consider the why, how, and what of your business. Staying focused on these questions goes a long way toward entrepreneurial success.
Failing to Know Why Your Company Exists
Why are you in business? What problem does your company solve?
To do well, a company must be able to convey to consumers why it does what it does. It needs to have a believable story that supports its existence. Businesses with staying power have compelling stories that their customers believe.
One way to define why your company exists is to identify the points of pain suffered by your clients or customers. Does your company help avoid or solve a particular point of pain? Does it help to increase other’s’ happiness, peace of mind, or comfort.
Failing to Know or Convey How Your Company Does Business
Once you’ve determined the “why” of your company, next consider how you do business. What systems and processes do you use to deliver your services or products?
To succeed in business, you must have effective, efficient processes that are in harmony with your company’s story. You must also ensure that you can explain your processes to others, so that when your business grows, managers and employees can duplicate the proven success of your operation.
Failing to Identify What Your Company Does Well
The third piece of the pie is determining what works—or does not work—for your company. It is critical to review your successes and failures regularly and to incorporate what you learn into your business plan.
Use existing documentation, as well as customer and employee feedback, to identify your company’s strengths and weaknesses. But don’t stop there. Make sure you take this feedback and build it into your written business plan moving forward.
This article is a service of Gratia P. Schoemakers, Creative Business Lawyer®. We offer a complete spectrum of legal services for businesses and can help you be successful. We also offer a LIFT Start‐Up Session,™ which includes employment structuring, financial, and tax systems you need for your business. Call our office today to schedule your appointment to ensure your business is set up to succeed.