Opinions expressed by Entrepreneur contributors are their own.
A search for “formula for company success” on Amazon yields almost a thousand results, primarily consisting of self-help books. While I don’t claim that I have discovered the elusive formula, I believe certain characteristics can aid in achieving success, which I identified after analyzing the top companies currently active in the market.
I’m the founder of a deep tech company that is trying to push the limits of what is possible in the field of computers. For me, following these principles is crucial to achieving this ambitious goal. Yet, I’m sure these principles are not exclusive to any one field or industry and can be applied to any business willing to prioritize and use them as tools for development.
Related: 5 Key Leadership Principles for Driving Growth
Elegance
Elegance goes beyond mere aesthetics; it is the embodiment of beauty in every facet of a company. What does beauty consist of? Honestly, everything. If the founder wants to ensure the elegance of their product, they should pay attention to the structure that should be observed in every process of interaction with their company. Those may range from the way your employees present themselves at networking events or in-store to the speed with which your support team assists customers. Not only will this provide your brand with consistency, but it will also become more appealing because, after all, humans are aesthetic creatures.
When you think of elegant products or packaging, I’m sure one of the brand names that comes to mind is Apple. From the logo to the in-store decor, elegance is evident in every aspect of the brand’s efforts. In your business, the aspects of elegance are definitely different from theirs, but their role is the same.
Focus on goals and values
Focusing on the result is especially important for tech companies, particularly those developing new tech, as it allows them to deliver on their promises to both themselves and their customers. Most importantly, it allows them to focus on only those aspects that are truly important and relevant to their ultimate goal. To achieve this, detailed planning is required, where the most optimal path is selected from thousands of possible options. Moreover, prior to any action taken, it should involve thousands of hours of research, hypothesis testing, and more, but it all must contribute to the company’s goals.
According to Gartner’s 2019 Product Manager Survey, only 55% of new products are launched on time, and the other 45% are delayed by at least a month. This underscores the importance of the founders not only setting realistic goals but also communicating them clearly both to your customers and employees. Additionally, the company should not stray from its original purpose and should always keep its eye on the end goal. In order to stay on track, some things should be prioritized, such as good time management, both in your life and in your business, or for example, preparing contingency plans in advance. You can use these tools to ensure proactive and adaptive responses to unforeseen obstacles to ensure a smooth, or at least stable, ride to success.
Initiating and igniting
While it is important to keep up with the market and its latest developments, it is crucial to use this information to create new trends instead of simply following the existing ones. To follow this approach, business owners should create and keep in mind a clear picture of how their businesses differentiate themselves from their competitors, allowing them to have a shot at becoming industry leaders. The problem with utilizing trends as a foundation for a company is that the trend cycle inevitably leads to obsolescence.
Netflix is a prime example of this. It originated as a DVD-by-mail service in 1998, just one year after DVD players were introduced in the U.S. before they became an essential part of every household. The company not only competed against Blockbuster, the largest rental chain at the time, but also revolutionized the rental process by introducing a new way for consumers to interact with their services, introducing a subscription model in 1999. Netflix entered the year 2000 with only 300,000 subscribers, now this number is up to 247.2 million. Why? Because they were able to come up with an idea for a truly unique service.
Pursuit of excellence
One of the greatest enemies of any entrepreneur’s long-term success is these three words: “That will do.” This phrase not only affects you as an entrepreneur, undermining your abilities and limiting your potential success, but it also affects every single facet of your business. The pursuit of excellence doesn’t entail that you shouldn’t attempt to release anything until everything is perfect, but it does suggest that whatever you can do should be done to the best quality possible.
The strive for perfection, or rather the lack of it, is the reason the above-mentioned DVD rental chain now has only one store left in the U.S. When the market began expanding and Netflix entered the game, Blockbuster had the opportunity to acquire it, but passed on it arguing that Netflix was a too-niche business. Blockbuster’s opposition to online streaming and the fact that it was stagnant and content with the unchanged while an entirely new industry was evolving prevented it from innovating.
Related: 5 Key Leadership Principles for Driving Growth
Embracing challenges
Given that technology has advanced more in the past two centuries than at any other time in human history, the possibilities for further development and creation are endless. It is not uncommon to encounter a myriad of problems when creating something new, especially in the beginning. However, a business owner shouldn’t avoid working on a unique product or service simply because of the issues it may present and to search for innovative solutions.
As obvious as it may seem, the easiest way to approach a challenge is through hypothesis testing. Whenever you are faced with seemingly impossible problems, it is of utmost importance not to be intimidated by them, as this can lead to stagnation or the inability to deliver the promised product or service. By using hypothesis testing, one can generate and test dozens of possible solutions to avoid stagnation and initiate progress. Not only does this expand the range of feasible solutions, but it also allows the company to create a truly great product or service because you will be able to accomplish something no one has ever done.
Positive impact
In the 21st century, it is essential to prioritize more than just profit, especially at a time when we are experiencing such a rapid escalation of climate change and other worrying events. We are at the pinnacle of technological development, and it would be irresponsible not to use it to improve the world around us or at least try to preserve it for future generations.
As a founder of a tech company, I often pay attention to this detail and believe that a positive impact is essential when it comes to running such a company and that those who have a genuine urge to make the world a better and safer place have a real chance of creating a thriving business. Of course, this principle is not exclusive to one industry only; for example, food delivery and ride-hailing services have a better chance of succeeding if they are inclusive and convenient to all. Remember, if you have an opportunity to impact the world with your business, there are hundreds if not thousands of options available, especially today.