CRITICAL SUCCESS FACTORS
Naturally we all want our businesses to do well. However, every industry is slightly different and therefore, the factors (usually called Critical Success factors) which will ensure a business’ success will vary as well. We need to examine and relentlessly focus on our CSF’s.
As an entrepreneur, you are “juggling many balls” at the same time. As a consequence, it is very easy to become distracted by focusing on the urgent rather than the important.
Knowing your ‘Critical Success Factors’ will change that.
What is a Critical Success Factor?
A Critical Success Factor (CSF) is a key element that your business must achieve or include as part of its regular practices in order for the business to be successful in the long-term.
Identifying Critical Success Factors
Reflect for a moment on some of biggest companies in the world, and think about what makes them successful. Below, are some well-known brands and a few of their Critical Success Factors:
Volvo -They are safe!
Coca-Cola – Great taste (quality), found almost everywhere (distribution)
Apple – Innovation, customer experience, quality
This may give you the false perception that being big equates to success.
Certainly, companies generally grow larger because they successful. But I’d like you to think for a moment about some local businesses in your town or city which are successful. What is it that makes them great?
It could be the large local real estate who is known because its people are honest in all their dealings. It could be the local restaurant which is always full because it provides great food at a reasonable price in a warm atmosphere.
You get the idea!
Let’s look at some examples to unpack this further:
Example One: A Restaurant
Below are some of the Critical Success Factors that you would expect from a restaurant:
➢ Great Location – Easy to find, drive past
➢ Parking Facilities – Can people drive there? (convenience)
➢ Value for Money – Price (be it cheap or expensive) is relative to the offering
➢ Good Atmosphere – Clean and suited to the target market
➢ Customer Service – Well trained staff that are prompt & courteous
Example Two: An Online Business
An online business will have very different Critical Success Factors to a restaurant:
➢ Generating traffic – How will you get the right audience to your site?
➢ Building an email List – What good is it if people come to your site, but you don’t get their details for an email list?
➢ Engagement – Persuading visitors to come back to the site and engage with the materials which you provide (download, view, read, listen, etc)
➢ Conversion – Persuading the customer to buy from you
Using the Critical Success Factors
Great, you know the key factors that will make your business successful. There is just one problem; you’ve got to work out how to achieve them!
For each Critical Success Factor, you should develop a strategy which will help you to achieve each of these factors.