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The 3 Biggest Success Or Failure Factors In Business (REAL WORLD Stuff!)
"Why other businesses are a success? Why does one deal at a car dealership do great and another one fails?"
- A question from Ben from the Secret Wealth Project Facebook group.
This is a very good question and it applies to every business, not just internet businesses and it can apply to any type of business. I'm going to answer it from any business point of view, because at the end of the day as much as we do focus on online business, it's still wealth generation we're talking about.
These are the three major reasons that can make or break any business...
1. Marketing - This is the main factor
Marketing skills and/or a marketing partner contributes at least 50% to the success of a business. You can have everything right including an amazing product, but if you get the marketing aspect wrong, everything will fail. Whereas you can offer a product that is just 'okay' but if your marketing is amazing then your business will almost definitely succeed.
2. Location - This could also apply to online business, but more so to offline business
I spent a lot of time and money learning that location is very important in a business. I used to own a night club and the location was very bad.
I don't mean that the location was bad because people had knives, but because the location didn't have any footfall (not enough number of people passing through the area at any given time). If my nightclub had been located in a location where most nightclubs were, I'm sure we'd still be smashing it up until now.
Location for real world businesses is massive.
If you have a bad location, your business will surely fail. However, if your business is in a good location, you will surely succeed. Free parking is very important when choosing a location.
People want convenience and if your business is located in a location where parking is free, it will help your business succeed.
With no free parking and no foot fall, you will be fighting an uphill battle from the start.
3. Mindset - Mindset is everything. Everything was against me when I was in the night club game.
I didn't know what I was doing, I was a beginner, I didn't know any laws, I didn't know the regulations, I had never ran a nightclub before and I had never managed a nightclub before.
I did not have a clue and I did everything on my own. I didn't have an experienced business partner and I didn't have someone to turn to.
I had to learn everything about the night club game from scratch with nobody to ask and it was nuts and I don't know how I made it work.
My nightclub was a very successful business for a couple of years. Looking back, I shouldn't have done it because the location was bad and I was inexperienced.
There are a lot of reasons why that business should have not work but we absolutely smashed it.
In the end I closed it down because it was more hassle than it was worth it and it wasn't making the money that it once made.
However, my night club had been a good business in that area for a good couple of years and nobody had been able to do that before me.
Previous owners were wondering what I have done in my business, why we were able to smash it for a couple of years when they were unable to.
I believe that what made my night club succeed was MINDSET
I went in to that business thinking "This will work." and "I will make it work no matter what." At that time I remember feeling I didn't care what I lost and I didn't care what I sacrificed.
I had to sacrifice a lot I have to admit but I didn't care what I sacrifice to get that success and my mindset was that night club was going to be a success no matter what.
The reason why my night club had been a success even though I was up against the police, the council and other business people who hated me because I was someone new and took their business, the reason it was possible was because of my MINDSET.
These are the three major reasons I can think about right now that can make or break any business.
There are other factors as well that you need to think about. Like, a good product and good customer service. Always remember that a good product and good customer service can really help your business.
Price is also a big factor, you don't have to be the cheapest and you don't have to be most expensive either unless you can justify the cost.
You can have everything right, but if you charge ten times more than others, then your business will fail. You have to think about margins as well. Sales won't matter if you got no profit.
Branding power can be a factor as well, a good example would be if you're selling sandwiches and if you're selling it next to Subway then you would likely lose because Subway has a branding power already that they have built for years.
The next one would be business model. For example, if you're selling mars bars and you're only getting 10 cents profit and others are selling villa and they're making 100,000 dollars on sale, who do you think will thrive?
Mars bar for 10 cents profit versus a property for a 100,000 dollars profit per unit, it's definitely the latter business model that's going to succeed.
If you think I missed out something and if you need something to add, please comment below.
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