Only one in 5 companies makes it to the fifth year, and even fewer make it to 10 years. What do successful companies have in common?

1. The experience and skills of senior managers. More than half of business failures are directly related to managerial incompetence.

2. The energy, persistence, and ingenuity (the will to make the business successful) of the top managers. Many business owners have failed or come close several times before their “instant” success. do not give up

3. A product that is at least above the competition and a service that doesn’t get in the way of people buying. There must be a compelling reason to buy; the product is great, people love to serve, and the shopping experience is easy and fun.

4. The ability to create a “buzz” around the product with aggressive and strategic marketing. Make scarce marketing resources count. Do as much research as you can about your customers and their options before spending your money on marketing.

5. Skills to make deals to sell the product at the highest possible price given your market. It all comes down to your customers’ perception of the value of your product, and sometimes the power of your personality.

6. The ability to continue developing new products to retain and build a customer base. Consider incremental product development based on enhancements to the current product line and sold to the current customer base.

7. Dealing skills to work with resource providers to keep costs down. Keeping costs lower than the competition and continuing to seek cost reductions even when the business is profitable is key.

8. The maturity to treat employees, suppliers and partners in a fair and respectful manner. Trust and respect result in productivity gains in ways that can be difficult to see and quantify.

9. Superior location and/or promotion creating a connection between your product and where it can be obtained. Studies have shown that it may take seven times to see your product or name before a customer is ready to buy.

10. A steady source of business during good economic times and recessions. In the long term, develop a product mix that includes winners during good economic times and other winners when times are tough.

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