Running a business appears complex. However, did you know that for most businesses, no more than five key factors need to be properly managed? Here are some examples of industry and business key success factors.
- Banking requires:
○ the ability to obtain money cheaply
○ investing the money at a profit.
- The beer industry needs to have: :
○ full utilization of brewing capacity;
○ a strong network of wholesale distributors;
○ clever advertising
- Apparel manufacturing demands:
○ appealing designs to attract the target market;
○ low-cost manufacturing efficiency to achieve those high profit margins
- An airline performs well when it has:
○ efficient routes;
○ excellent customer service;
○ ability to sell-out seats;
○ forward contracts to weather the rising cost of fuel;
○ standardized airplane models for cheaper maintenance
- A hotel must have:
○ a good location
○ global appeal to attract world travelers
○ quality management. One hotel employee can make the difference between a delighted customer or a customer who goes online and writes a bad review about their experience.
○ flexibility to meet the varying needs and expectations of customers.
- A coffee business requires:
○ loyal customers
○ sufficient customer traffic in the neighbourhood;
○ satisfied and skilled employees. They have a huge role in determining the culture of the business;
- A restaurant requires:
○ location with easy access
○ ambiance to set the mood
○ good Chef -no need to explain
○ a menu that caters to the strengths of the restaurant
In all of the above examples there are no more than 5 key success factors, and often less. Achieving excellence in these factors may not be simple, but knowing that only 3 or 4 factors are required helps to focus the mind on the essentials. Manage them well and they may be the key to your success.