What metrics determine business success/failure?
Answer by Drew Steig – Quoras Own Start Up and Small Business Guru
Answer originally posted on Quora.Com
There are many areas to focus on when running a business. Prices, labor, material cost, equipment cost. But i suspect you are looking for simple. If you boil it down to a couple key things i would say these three are the most important to your success.
- Profits — at the end of the day you have to make money, or its not a business. Do your market research, make sure you can make a profit after all your expenses and still stay competitive. Noone will care that you’re a new company and cant keep your prices low, find a way to make it happen, or dont do it.
- Leadership — is the leadership in your company focused? Driven? Not everyone has to be the super excited salesman, but you and your leaders must be motivated, focused, and determined to move things forward.
- Wise execution — when something doesnt work do you beat it like a dead horse? Too proud to admit you were wrong. To execute at a high level, you must always be making changes, find what works, abandon what doesn’t. Never be too proud to admit you were wrong, or to admit that the janitor had a great idea. And always reward your people when they come up with something good.
There is so much more, but there are the core basics. Good luck!