While there is no magic bullet to ensuring your business will be a success - here a few observations I have made, hope they help. The following list was created as a result of helping a client get focused in order to write his business plan. There are five crucial areas that will increase your odds of success.

1) Narrow Vision: less is more. Specializing and focusing on a limited scope of products and services allows you to concentrate your limited time. A new business has a limited capacity. Orange juice diluted with water tastes very different than concentrated frozen orange juice. Being concentrated on a narrow scope brings a new level of intensity. This translates into an increased ability to adjust your product and service to better suit your marketplace.

• Resources: do you have the right amount and combination of tools, money, people, and time?


• Money: create a realistic budget and cash flow projections.


• Human resources: who is going to do what?


• Time: give yourself time to adapt and grow into the new demands and challenges of owning a business.

2) Tools of the trade: every business requires specific tools, i.e. computers, hand tools, software, a building, etc. The key is to make sure you have the tools to get the job done. It is amazing how much time and effort can be saved by using a better tool.

3) Systems: even if you are a mom and pop operation, you will need certain systems (accounting, bookkeeping, sales, customer service, etc.). As your business expands the need for documented systems and procedures grows.

4) Market share: knowing the size, maturity and growth potential of your industry and market will help you to assess your probability of success. For example, a highly competitive industry that requires a 10% market share to break even is a high risk venture. On the other hand, if you only need 1/2 of 1% to break even, it is more attainable.

5) Understanding customer needs - do a survey: this will help you to better understand the needs and wants of your market. You want to get one of three results:

A) Learn something new, confirm you are on the right track or discover a potential mistake. In my experience, we almost always get some new information in all three areas! It will help you identify new customers, perceptions and opportunities. You will learn important concepts and refinements to the sales and marketing process. Here are a few examples:

• How accessible is this market?
  


• What are the most important factors a customer uses to evaluate a purchase?
  


• What motivates them to buy?
  


• How much are they willing to pay?
  


• Are there any other products and services they might be interested in?

B) Learn, change and adjust: did you know the 'zipper' was originally designed to quickly contain bales of loose crops such as hay and cotton. Today, the mighty zipper appears on most clothing. The invention was adapted to meet a different need. Would this application have been discovered without its first 'test' in an industrial application?

C) Identify what issues, opportunities or ideas might you be over looking? Forcing yourself to look into each of these areas will give you a competitive advantage over those who refuse to research, learn and change their approach. If you are willing to keep testing, modifying and changing your approach -- eventually you will rein over your competitors!