IT is important to know the Key Success Factors (KSF) of your business as it will determine your success and potential growth. Business growth is only possible when it is competitive and financially successful. Therefore we have to actively review our approach, competitive abilities and competencies continuously.
5 KEY SUCCESS FACTORS
According to the Total Success Centre there are five KSFs that any business needs to succeed:
1. People – Those who make up the business.
2. Purpose – The reason and strategic focus for working together.
3. Processes – The activities people undertake to fulfil their purpose.
4. Physical Resources – The workplace, right equipment and money to pay the bills.
5. Customers – People willing to pay money in return for the products/services rendered.
3 FOCUS AREAS
There are three focus areas that anchor our business’ relevance. Our customers, our competition and the environment in which we operate. A brief analysis of our customers should tell us who they are, what they want from us, what they purchase, when and why they purchase. What do your competitors offer, their pricing structure, their service and their perception of their offering.
PORTER’S 5 FORCES FRAMEWORK
This is a magic tool to examine our competitors. It analyses five forces that determine your competitive intensity and therefore the attractiveness of your business. It helps you to determine what you need to beat the threat of the following forces:
1. The potential of new entrants to your industry
2. The bargaining power of your suppliers
3. The bargaining power of your customers
4. The threat of substitute products
5. The existing competition that you face
We do not operate in a protected artificial space. Internal and external factors in the global environment, that are out of our control, impact on our business. The PESTEL framework remains a reliable tool to analyse the macro-environment. Be honest and explore the impact of the following:
• P – Political matters e.g. policies
• E – Economic matters e.g. interest rates
• S – Social matters e.g. the trends
• T – Technology, are there new ways doing things?
• E – Environment, how eco-friendly are our products/service?
• L – Legal matters e.g. compliance and the cost and impact thereof
Lastly, explore who your stakeholders are, what they expect from you and how the business benefits from them. Your family, staff and the community are valuable stakeholders to consider in the sustainability of your business. WISE WORDS: “Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction and skilful execution; it represents the wise choice of many alternatives.” Michael Deli
– Betsy Ings