The Single Factor To Ensure Business Success
You have probably heard about the 80/20 Principle – that a small amount of well directed effort can produce very significant results.
Well, what if the 80/20 Principle meant that there was a SINGLE FACTOR which would almost certainly guarantee the success of your business (even if your business is not doing so well at the moment).
To get input on how your business is going against this SINGLE FACTOR, complete this questionnaire. (Or to read more about it first, see the information below).
[insert questionnaire with score out of 100]
More Information on the SINGLE FACTOR
The most prolific author and thinker of the 80/20 Principle is Richard Koch, a former consultant of Boston Consulting Group and Bain & Co – and now fractional billionaire.
Richard has spent virtually his whole working life thinking about 80/20 and the SINGLE FACTOR….and has made a LOT of money from investing in businesses – both small and large.
He says that the SINGLE FACTOR its NOT the factors that most people think.
Its not leadership, management, staff quality, written procedures or capital coverage.
Richard says that the SINGLE FACTOR which outweighs any of the other above factors is…..MARKET POSITION.
In short, Richard says that your only need to focus on ONE THING – your market niche and where you sit in comparison with your competitors in that niche.
He has coined the phrase STAR BUSINESS as referring to a business that is the leader in a market niche that is growing by at least 10% pa (or ideally more).
And he says that even if your current business is not a STAR BUSINESS, in most cases its possible to change this with only a small amount of well focused effort.
Hint – think about how you could deliver virtually the same product or service to a narrower target market – and in doing so create a new market niche overnight. Each situation is specific but to get your creative juices going, think about specific gender, age, industry, geography, etc. Or maybe even a modified product or service that nobody else delivers. Or the addition of a guarantee that’s unique.
This SINGLE FACTOR should be your one and only consideration – and don’t stop until you have nailed it.
PS Many business owners are nervous that if they change their focus, they will lose current customers who fall outside this focus (but this doesn’t necessarily need to be the case).