3 Misconception on Business Success

It is interesting to hear people’s thoughts on what makes a business successful or what you need or have to do in order to become successful. Below are three misconceptions we have learnt over the years.

1. Growing Fast & Big = Success

People often hear you have to grow fast and grow big in order for you to be successful in your industry, although that is great in theory, it doesn’t always work like that. People get so focused on growing that they get too ahead of themselves and don’t grow sustainably. As you grow, it is important that your processes, strategies, infrastructure, and resources grow with the business in order to sustain the growth, otherwise the business will fail. We have seen it happen many times, especially with tech businesses and restaurants. For example, the tech business will spend much of their time and effort on the technical side to make sure everything functions well and on trying to get users, often times depleting their financial resources. They tend to overlook all the processes, personnel and financial resources that is required in order to continue their growth.

2. Business Plans Are a Waste of Time

Once we have a business idea, we tend to get romanticised by it and think “well, I thought of the idea so therefore I know about how it will work and don’t need to waste time writing it down”. What a business plan allows you to do is think through your entire business idea, conduct the necessary research to determine if it is feasible, and assist you in determining how you will turn your idea into actionable steps. It serves as a guide, motivation, and as a tool to identify potential pitfalls, which can save you from making costly mistakes. As well, many financial institutions, government agencies, and investors will ask for a business plan before providing any funds to, one, ensure you have thought this through and two, how likely it is you will either be able to repay the funds or get a return on investment. Check out our blog on 3 Tips on What to Include in Your Business Plan to help you get started.

3. Unique Business Ideas = Successful Business

Not really. You could have a unique idea about solving poverty but unless you have the right management to execute it and it is supported by sufficient resources, your idea will likely fail. We are not saying you have to go out and find a very expensive executive to have a successful business, what we are saying is, the leadership of the company will play a critical role in the success of the company. For example, you don’t want a leader who jumps into a situation with both feet and worries about the consequences after, that’s not a sustainable strategy. You want someone who has conducted their due diligence, who has a forward-looking mindset and a realistic attitude, possess business acumen, and is a good communicator. In order for them to lead the business to success, the right resources need to be in place such as, the financing, the personnel, the infrastructure, and systems and processes. Your internal foundation needs to be strong in order to bear the brunt of the competition around you.

Thanks for reading. We hope you found this insightful. If you have any questions or want to discuss your business, please don’t hesitate to contact us at info@joycegrp.com