Why do you need to know about what differentiates a successful and unsuccessful business?
No one looks at a failed business and its strategy as most people think there’s nothing to learn. However, it’s actually the opposite. Comparing the elements that led to a business’s success and failure can help you develop a robust strategy that can give your organisation the best chance to succeed.
After all, you learn more from failures than from success.
To your aid, several online business management courses in India take this approach. These courses can help give a competitive advantage by indulging professionals in case studies and immersing them in differentiating factors of successful and unsuccessful businesses.
So without further ado, here are some key factors that make or break a business.
- Business Planning
Developing a good business plan is key to opening a business. However, some business owners fail to realise the importance of performing market research and developing a good business plan.
You don’t have to develop complex business plans to achieve success. A simple, thorough, and well thought out plan will suffice. These plans can get your organisation off to a good start and also help you prepare for uncertain times.
On the other hand, a company with a poor business plan decreases its chance of success.
- Management and Leadership
A company’s leadership says everything.
Apple wouldn’t be the best smartphone selling company in the world without the leadership of Steve Jobs. And Tesla won’t be at the forefront of modern technologies if it weren’t for the vision of Elon Musk.
So yes, a company’s management and leadership are some of the most crucial factors determining its success or failure. Successful businesses employ managers and leaders who understand the organisation’s vision and mission and know how to take it to the next level. Such leaders possess the ability to inspire and motivate employees and take them along to achieve organisational goals.
If you aspire to become a part of the successful business managers herd, consider enrolling in reputable business management courses in India. These courses can help you lead, motivate, and inspire people to achieve your company’s objectives.
- Financial Knowledge
The third yet one of the most critical reasons many businesses fail is a lack of sufficient cash flow. Managers and owners of successful organisations realise the importance of maintaining adequate working capital and hiring financial professionals who understand every facet of implementing effective cash flow policies.
Developing a robust financial plan allows the organisation to spend money effectively and measure such policies’ success or failure over time. The IIM Raipur general management course can help you take into account every facet of business management and plan for the long term as well as the short term objectives.
- Marketing Approach
Another key differentiating factor of successful and unsuccessful businesses are the marketing strategies. A company may possess a great product, but unless they market it right, no one is going to purchase it.
For instance, Blockbuster Video, the home movie and video game rental service giant, could not transition towards a digital model and had to file for bankruptcy in 2010. The company failed to acclimate to the changing environment and didn’t uproot its marketing strategy to compete with digital platforms like Netflix.
The IIM Raipur general management course can help you understand the intricacies that go behind curating the right strategies, whether it is concerned with marketing, sales, production, or general business management. So for a well-rounded view, this course from IIM Raipur can prove to be the ideal choice.
- The Numbers Alone Don’t Do the Job
In 2020, Hyundai sold 21,320 units and witnessed a sales slump of 49.25%. Maruti Suzuki, on the other hand, hit 51,274 units with a decline of 53.81%. And yet, their numbers are almost twice as that of Hyundai.
Clearly, Maruti Suzuki came at the top but with a decline since last year. This illustration shows that the number of products sold doesn’t measure the success or failure of a business. An unsuccessful business goes through a decline and eventual loss for the financial year. So numbers alone can’t tell you whether the company is successful or not.
However, in order to study those numbers, you need to conduct market research and competitive analysis to understand the sales of your competition. The business management program from MICA can help you understand the ideal way to conduct a competitive analysis and derive insights from the collated data.
- Competitive Advantage
If a prospective customer approaches you and asks: Why should I choose you over your competitor? Would you be able to give them a good answer?
This is what draws the line between a successful business and an unsuccessful one.
For instance, Netflix is offering a huge movie library, but so is Hotstar and Amazon Prime. So why is Netflix more popular? The interface, the usability, and the quality of content available on Netflix have no comparison to what is being offered on other digital media platforms. This is what sets Netflix apart.
Experts suggest that you must have a competitive advantage to have a successful business, one that is difficult for competitors to copy. This differentiator is also known as the UVP (Unique Value Proposition).
It’s a Wrap
The difference between a successful business and an unsuccessful one is the desire to serve your customers, backed by proper strategic planning and keeping the above-mentioned factors in mind. If you strive to learn in-depth about business management and its key differentiating factors, consider scouting for accredited business management courses in India. These courses can help you build a competitive advantage with business management.
One such online course you can rely on for such in-depth understanding is the IIM Raipur general management course. Offered in collaboration with Talentedge, this course is considered to be the best business management course on the digital platform.
Boasting an extensive curriculum and a unique LIVE & interactive pedagogy, the IIM Raipur general management course is the ideal choice for business managers or professionals aspiring to progress their career.