If you look at any business, regardless of which industry they are in, you will find that each part of the business has four key sectors. These are the big wheels that keep all of the little wheels turning. This is true whether you are part of a large corporate business or your own, small, self-run businesses.
Every decision that a business makes, and action that the business takes, as a result, will be governed by a combination of these four factors. If any of these key sectors is not working correctly, it affects which decisions are made and, ultimately, how successful it is. Take a look at four areas that influence the success of a business.
This one sounds extremely broad, but the term needs to be broad for a constantly expanding and changing part of your business.
The term ‘Technology’ refers to all of your Hardware, Software, Support, and Networking. Hardware covers any physical technology you have, like your laptop or computer. Software is what makes it all run and includes all of the programs and apps you use. Support is your back-up when anything goes wrong (which can be every day). Networking links it all together with your business and everywhere else via the internet.
One of the key decisions for any business is where and how you store your data, whether it be on an in-house server or, more frequently, on a virtual cloud server. This will hold the client’s digital identity information, its list of clients and products, everything that forms the very bones of the business itself.
This data and the hardware it is stored on must be protected, as does the ability to connect with it from wherever your team may be working. Strong support given by companies such as Kansas City IT Support will keep your data safe, and their expensive equipment is working.
#2 Financial stability
Financial Stability is an exceptionally large part of a business. It is the business’s overall goal to benefit all of those involved financially, so every decision within the business is made with this in mind.
A businesses financial stability depends not just on the day to day running but everything from long term investments to quick and cheap repairs. It is also a key factor when dealing with both customers and suppliers who want to know that their product will be delivered or that their bills are going to be paid.
Many start-ups fail for this one key element, as somebody usually drives these new businesses with a great idea but no plan on how to fund it. Financial stability is an awfully hard thing to maintain, too. One bad investment or one customer goes bankrupt before they pay, you will very quickly see your business ledger fall into the red. This can be frightening and quite daunting, as the unpredictability this causes can have a knock-on effect.
Advertising is also a key factor in how a business works, for building its brand, attracting new customers, and making repeat sales to existing ones. Location, timing, and association are three of the top things many companies consider when thinking about their advertising.
Location is one of the most important things they think about. It is where they will pick up their target audience, whether that be online, locally, or both. It will define where the advertising is seen.
Timing relates to when the audience sees the advertising, Whether it is a time of year, specific day, or even time of day that your research (or trial and error) has shown to be most effective. This is not true of physical advertising (except maybe digital billboards), but online and radio advertising can be precisely targeted.
Association is the use of symbolism within an advert or a connection with a celebrity or a sport to create a positive impression in the audience’s mind. This is why businesses’ will often sponsor an event or a personality so that any positive impression of that individual is also associated with their business.
Effective use of advertising can make or break a business. Poor location, timing, or association with the wrong thing can mean the advertising budget is wasted. However, good ROI (return on investment) can bring a business a steady stream of profitable customers
#4 Customer Service and Satisfaction
Customer service and satisfaction is a very fragile factor. Even in the modern world, where customers are aware that many reviews are fake, just one bad review can put an undecided customer off and lose you a sale. If that review is from a high-profile customer or one that influences within your industry, it can have a more serious effect on your business’s future.
On the other hand, good customer satisfaction is an excellent marketing opportunity. A satisfied customer will not only return themselves to buy again but will often become an advocate for your business.
This works even more effectively online. Good reviews on websites are also more likely to create a positive bias toward your business, so future customers are far more likely to consider your business when thinking about a relatable purchase.
Good feedback from customers also has a positive effect on your employees. Your workforce will have a much better day from hearing praise rather than speaking to irate customers on the phone all day. Happier workforces tend to be far more productive, so the impact on your business goes far beyond what they are saying about you on Trustpilot.
An experienced, qualified individual will usually manage these four key elements with a proven track record within larger businesses. As a smaller business, or even as a simple work from home start-up, you might not have this luxury.
In this situation, either outsourcing or finding a software solution can help you manage each part of your business. Choosing these services well are some of the most important decisions you will make for your business, so you need to research them fully.