5 characteristics of successful businesses

posted on 20th Aug 2018

There are many characteristics that separate a successful business from a business that doesn’t quite make it. On average 50% of new businesses fail within the first five years, so it’s important to know these characteristics and implement them to set your business up for success. Although there is no ‘one size fits all’ strategy, our Financial Controller has put together 5 key characteristics of a successful business:

1. Clearly defined mission statement, goals, strategy, objectives and tactics

All involved in the organisation need to know the why, what, how and when of the business. Otherwise, it will drift aimlessly and will eventually come to a watery grave. Beware becoming the agency that is the jack of all trades and master of none.

2. Adequate strategic analysis, decision making and implementation

Management and staff need to be continuously re-evaluating the company’s position and performance. If action is deemed desirable or necessary, responsibility needs to be assumed or assigned, and implemented and evaluated on completion.

3. Motivated, competent and adequately appraised workforce

Staff are only going to give their absolute best to the company on a medium to long-term basis if they are treated fairly and adequately compensated.

4. Cashflow management and financing

Bank balances, debtors, and creditors need to be managed meticulously to make sure there is always enough cash flow to continue operations. Long-term investments should be financed with long-term financing.

5. Strong brand strategy

Brand strategy is a long-term plan for the development of a successful brand in order to achieve specific goals. A well-defined and executed brand strategy affects all aspects of a business and is directly connected to consumer needs, emotions, and competitive environments.

 

Rob Madigan FCA CTC BCOMM, Financial Controller
Rob, a chartered accountant, is the FC for Neworld, a creative branding agency with over 30 years’ experience developing brands to position them for future growth. He has worked with Neworld since September 2008 and guided the company through interesting waters. Rob admires greatly his colleagues’ creativity, energy, and enthusiasm for their work and is happy to be a little part of the show. He previously worked in accountancy with PWC and Madigan + Co and in hedge fund administration with Citco Fund Services Dublin.