If you have been in business for a while or even just started out in business there are several key factors and characteristics of a business that make it successful.
I could easily write a whole book on this whole subject and outline a plethora of characteristics of a business that I believe make it fruitful. However, there are a few main ones that I, without any doubt, would advise you to focus on the most.
Characteristics of a business that make it successful
1. This is 100% top of my list. Build a business that will have an end sale value. This is important because not only should you be building a business for cash flow, but a business that is an asset, hence it has to have an end sale value.
For most people, especially the ones that started from nothing, cash flow is everything in their business and usually the only reason they started a business was to create more money for themselves. However, the more you evolve in your business journey you will find that the bigger the business you build, you have to focus on the end sale value and building their business into an asset.
Couple of reasons for this is because of several tax benefits (NOTE this is NOT tax advice so speak to an accountant about this) in many western countries for those who sell a business and of course the cash out by selling an asset (your business) to someone after years of building it.
Build an asset that also has cash flow
2. I look for businesses that have regular cash flow and have what is called ‘trail based incomes’. These are businesses that have regular transactions from the same client either every year of every month, predominantly.
Out of all the characteristics of a business that make it successful this is for sure the sexiest one as it means your business has regular income without having to acquire more and more clients. You see, you will find that one of the biggest expenses in any business is the acquiring of clients. I have another blog on getting clients here. So, if you can build a business that only has to acquire a client once and then this has them transacting with you several times each year, you are on to a winner of a business. This also helps the asset value too.
3. Now lastly, the characteristics that I think many miss when looking to build or start a business is replication. You should always and I mean ALWAYS look to build a business based on replicating something that is already working out there in the market.
Now, I know many are saying themselves now “I want to be unique and if invent a new product I am going to blow the world away and make billions”. Well, I am not here to piss in your pocket and here to tell you the truth about the characteristics of a business that creates success and if you have never made millions in business before, being unique is not something I would suggest.
My motto is why don’t you start out by learning from something or someone that is already making millions and replicate that business model. Once you have made a success of that THEN and only then go out and try the unique approach. The thing is, I have trained over 50,000 entrepreneurs over 3 continents and anyone that has gone out there, replicated a business model already working and made millions, they usually NEVER go and create that unique ideas because they realise what they are doing already works, so why change it.
I hope this has shed some light on the key characteristics of a business that make it successful and you use the above three factors to go out their and build yourself a “proper” sellable asset that has cash.
If you liked this blog, check out What you need to learn to win the game of business