What makes a successful business?
I read an interesting article by Rich Schefren [ www.strategicprofits.com ] and his view is there are 4 core commonalities that good businesses share:
1) Successful-meaning they must MAKE money. Funding your business expenses with personal funds is a strong indicator you are in trouble.
2) Sustainable: You consistently MAKE money. Good month/bad month is not a long term viable business.
3) Scalable: Can you grow to 2x the size WITHOUT 2x effort? This is a great point that most business owners who are so involved in daily grind never consider.
4) Sellable: I found this very interesting but so true. Do you have a business that you could sell and walk away? Most business owners are so involved in every details they become the bottleneck that prevents any growth.
I would add a 5th . Without it none of the above are possible:
Systems: Without documented, continually improved upon systems for running your business you can never get OUT of the day to day minutia. A business owner should be able to have a new hire come in and refer to documented procedures for doing everything in the business. For me that is the true definition of a successful business.
And of course we believe automated payment collection via ACH and credit cards is a BIG part of systemizing.
What do you think?
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