Top 3 Characteristics of Successful Small Businesses
Small businesses are the backbone of economies. They contribute significantly to the gross domestic product and provide employment opportunities. However, starting one and making it successful is not a walk in the park. A significant number of small businesses fail within the first few years of operation. Nonetheless, some elements set successful small businesses apart. Here are the top three characteristics:
Creativity and Innovation
Successful small businesses stand out because they are creative and innovative. They continuously evaluate their products, services, and processes, looking for ways to improve them. As the market evolves, they adjust their business models to accommodate the changes. They also invest in technology to keep up with customer preferences in the rapidly changing digital age.
Take the example of Dollar Shave Club, a small business that revolutionized the shaving industry. They offered affordable, simple yet efficient razors, creatively marketed through viral videos that went viral on social media. They leveraged technology, automation, and digital platforms to disrupt the industry and gain a competitive advantage, culminating in a $1 billion acquisition by Unilever.
Customer-Centric Approach
Successful small businesses prioritize their customers and go out of their way to ensure customer satisfaction. They understand that their customers are their lifeblood and treat them accordingly. They listen to their customers’ feedback and incorporate suggestions to improve their products or services. They personalize their customer experiences, building strong customer relationships.
One example of a customer-centric small business is Zappos, which provides exceptional customer service, going above and beyond the standard service delivery. They make it easy for customers to buy from them, offering free shipping and returns, 24/7 customer support, and a hassle-free return policy. Such customer-centric approaches build loyalty and create positive word-of-mouth, which is invaluable in the long run.
Resilience and Persistence
Small businesses encounter numerous challenges, ranging from market fluctuations to fierce competition. Successful small businesses do not let these challenges get in their way. They are resilient and persistent, continually bouncing back from setbacks and failures. They learn from their mistakes and adapt to changing circumstances, never losing sight of their goals.
Colonel Harlan Sanders, the founder of Kentucky Fried Chicken, faced rejection from over a thousand restaurants before finally getting a buyer. He had faith in his recipe and the determination to succeed, which eventually paid off. Today, KFC is a global brand with over 22,000 restaurants in over 135 countries.
In conclusion, creativity and innovation, a customer-centric approach, and resilience and persistence are the top three characteristics of successful small businesses. These traits are essential for any small business to thrive in today’s dynamic market.
