Factors Contributing to Small Business Success

People, Process, Product, and Profit are all managed by a successful entrepreneur.

People who are excited about their work and who engage in a flexible process to generate a lucrative product or service are the most important ingredients in small business success.
A large number of North American and European firms consider profit as the ultimate purpose of their operations. Management selects a product or service that they believe will make a profit and recruits (or fires and replaces) employees to perform the necessary tasks.
The most successful firms, on the other hand, prioritize their employees first and foremost. They hire and cultivate individuals who derive satisfaction, and in some cases, fulfillment, from applying their skills to the creation or provision of a product or service.

Their labor is organized into a process that changes as the company's success in generating and selling products or services increases.

"Profit is not the legitimate end and aim of management — it is the means by which all of the proper ends and aims are made possible," David Packard, cofounder of Hewlett-Packard, one of the world's most successful organizations, has remarked.

These concepts are especially crucial in a small organization where the team of individuals is closely knit, as described above.

People's Aspirations in their Professional Lives

The best assets of a company are the people who work there: their abilities, expertise, experience, and skills.

The business owner must hire each individual not only for his or her skills and qualities, but also for how they will contribute to the team as a whole. The owner must also ensure that each employee is committed to the development and supply of the company's products or services, as well as to meeting the demands of the people in the company's target market segments.

Employees' loyalty to the company is vital for the company's ability to retain them, however in today's work culture, people shift jobs frequently in order to advance their careers. It is essential for a small firm to demonstrate to its employees that they are meeting their objectives and aspirations, as well as pursuing their chosen career routes, in order to retain their abilities.

Processes for Achieving Business Excellence

The process establishes who is responsible for what and in what order to accomplish functions such as:

Making decisions, identifying possible clients or consumers, developing products or services, acquiring components and materials, assembling products, performing services, and developing strategies to bring products and services to market are all examples of decision-making.
Having a mentality of "that's not my job," according to leadership expert and coach Jim Clemmer, is not acceptable because it results in vital duties going unfinished. Processes must be flexible in order for everyone to do what is required.

On the other side, there is the possibility that people will spend an inordinate amount of time on things that do not require their skills to be utilized successfully. An inside salesperson, for example, should not take on the role of general office assistant for outside sales representatives.

It is critical to maintain a sense of balance in order for jobs to be completed by the most qualified individuals. Processes must be assessed on a regular basis to determine what is effective and what requires improvement.

 

How to Select the Right Product or Service

The following questions must be addressed in the selection of a product or service:

What provides employees with a sense of fulfillment and what allows them to pursue their passions?
What assists customers or clients in achieving their goals or (more crucially) in resolving their difficulties?
If the product or service is wholly new, the company will be required to undertake extensive and expensive research and development in order to introduce its concept to possible customers. There will be many fewer potential buyers than there would be for a type of product or service that people are already familiar with from competitive sources.

Many firms have found success by beginning by providing items that are similar to those of their competitors and then differentiating themselves via quality and functionality. Only if the product is a commodity would the business be able to differentiate itself on the basis of pricing.

Profit – Success and Surviving in Business

According to Dr. Tony Fattal, a business expert, professor, and owner of Tesle Enterprises, profit is the best indicator of a company's overall performance. It provides funding for expansion, ensures the company's financial viability during difficult times, and provides the means for owners to distribute profits to their employees.

Every company's success or failure is determined by its employees. Employees' productivity is increased as a result of the process. The product or service is what they provide to their customers in order to make their working life more meaningful. Profit is the driving force behind everything.