Tweet

Successful Businesses vs Struggling Businesses

Written by: Jane Hendry

Article Overview: What's the difference between successful businesses and struggling businesses? Or why do some firms flounder whilst others flourish? Have you ever noticed how some businesses seem to do extremely well, and go from strength to strength, whilst the majority just seem to muddle along?

Successful Businesses vs Struggling Businesses

What's the difference between successful businesses and struggling businesses?

Or why do some firms flounder whilst others flourish?

Have you ever noticed how some businesses seem to do extremely well, and go from strength to strength, whilst the majority just seem to muddle along?

Since starting my own business I've met many small business owners and what I've noticed is that the vast majority of them seem to just about get by, but few reach the level of success that they're actually capable of. Some of them end up failing altogether, some lurch from project to project, and some do OK, but never really achieve the success or lifestyle they envisioned when they started their business.

On the other hand, I know a handful of extremely successful service business owners, who are making high 6 and 7 figure incomes every year (and rising) - and yet they don't work longer hours, their products and services are not magnitudes better than their competitors and they aren't geniuses!

So what is the difference between the successful businesses and the struggling businesses?

In a word: Marketing

Whilst there can be other factors that affect the ability of a business or practice to be successful, such as the economy, trends, cashflow and product/service quality or innovation, the number one difference between successful high-flying businesses and their struggling counterparts is good marketing.

Here is the lament of one survey respondent which is typical of the angst felt by service business owners who know they do a good job, but who don't understand why they don't have a queue of clients at their door:

"We know our products and services are good - we get great feedback from those clients we've worked with - but we still have trouble getting potential customers to buy in. Our services offer real benefits to clients but we are not as successful as we should be when we see what other companies offer (not as much) and yet are still very successful."

If you offer a quality service or product that produces great results for your customers or clients, and yet you're still struggling to get all the clients that you want or need, or to charge the fees you deserve, you probably have a marketing problem.

What do highly successful business owners do that others do not?

The first thing that they do is to realise that their primary objective is to build their practice or client base. In the words of Michael Gerber (who wrote The E-myth) they "work ON their businesses, not IN their businesses". What this involves is making the time to work on the business - in particular on marketing and product or service development, rather than spending all of their time handling clients, delivering services and dealing with administration.
They also look for areas where they can gain "leverage". Simply put, this means gaining maximum return for every hour they work. Instead of trading hours for pounds or dollars, they find ways to do the work once and get paid for it many times. They find ways to market their services one to many, instead of one to one (thus reducing marketing and sales effort and time). They delegate those activities which take up a lot of time (but which don't add much value in terms of moving the business forward) or which they are not skilled in such as admin, accounting, website maintenance and copywriting.

They also develop a success mindset, understand their strengths and weaknesses, take risks, innovate, hang out with other successful people and build a support network around themselves.

But above all, they learn how to market their businesses and create a marketing system that keeps a steady stream of prospects knocking at the door, without taking up all of their time!

Related Articles
  Small Business loans to help dwindling cashflow
  Latest And Hottest Franchise Opportunities
  Marketing in a recession can really help your small business
  Fire Yourself and Fix Your Business
  Putting QuickBooks in the Cloud - Why Businesses Do It

Article Tags:



Related Forum Posts
Books for Women Entrepreneurs - There's a thread for good books in the Resources folder, but it doesn't target books for businesswomen particularly, so I figured I'd start such a thread here. It doesn't matter how successful you are in your business - it's always possible to learn something new. In subsequent posts I give Table of Contents and brief descriptions for various titles - most of them devoted to the businesswoman - and sometimes a review. If anyone else has read a review, or has read the book and found it useful, please comment! 1. The Old Girl's Network 2. Mother's Work 3. The 7 Greatest Truths About Successful Women 4. Pitch Like A Girl 5. Workplace Warrior 6. Treasure Hunt: Inside the Mind of the Modern Consumer 7. Contingency Planning & Disaster Recovery 8. She Wins, You Win 9. Napoleon On Project Management 10. Why Good Girls Dont' Get Ahead, But Gutsy Girls Do 11. Comeback Moms: How to Leave Work, Raise Children, and Restart your Career even If you Haven't Had a Job in Years 12. The One Minute Millionaire 13. Talking From 9 to 5 14. Soloing: Realizing Your Life's Ambitions 15. 101 Best Home Based Businesses for Women: Everything You Need to Know About Getting Started on the Road To Success 16. Work With Passion: How to Do What You Love for a Living. Revised and Expanded 17. Fail-Proof Your Business: Beat the Odds and be Successful 18. Confidence: How Winning Streaks and Losing Streaks Begin and End 19. Women Don't Ask: Negotiation and the Gender Divide 20. Millionaire Women Next Door: The Many Journeys of Successful American Businesswomen 21. Start Small, Finish Big: Fifteen Key Lessons to Start - and Run - Your Own Successful Business 22. Rewired, Rehired or Retired: A Global Guide for the Experienced Worker 23. The Martha Rules: 10 essentials for achieving success as you start, build or manage a business 24. The Essentials of Entrepreneurship: What it takes to create Successful Enterprises 25. Net Ready: Strategies for Success in the E-conomy 26. The Promotable Woman 27. Leave The Office Earlier: The Productivity Pro shows you how to do more in less time and feel great about it 28. The Work At Home Balancing Act: The professional resource guide for managing yourself, your work, and your family at home 29. Secrets of Six-Figure Women
Re: New forum - online businesses! - That's great news Evan! Congratulations Jeff on becoming moderator of Online Businesses, I'm sure you'll do a brilliant job! Take care, Carol
Re: What's 1 word to describe what your business will be in 2012 - Successful.
Startup Challenges - Kevin - it's a great read - you should pick it up! John - what kind of services are you offering? Your signature says "Providing Big Business Resources to Small Businesses" I have always found big companies to be hard to work with and slow to make decisions but smaller companies are more risk-tolerant and understand the online world.
Re: UPDATES: New Campaign! New Layout! New Ideas! - [quote="Ringo So":2696kbgu]Trent - It's actually a sub-forum within the "Making Money in 2010" category. Please let me know if there are any troubles finding it.[/quote:2696kbgu] Nope, still don't see it. I see the Online Businesses forum but that has been there for a long time. Is that what you mean? I don't see any Internet Marketing section.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

The True Cost of Employee Turnover

Why Use an Advertising Agency

Emotional Energy is Our Engine

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.