Focus is very important and the keys to success

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Unformatted text preview: the priorities in your business. Just about any business imaginable is going to depend a lot on three or four most important factors. In a retail business, for example, the classic joke is that the keys to success are “location, location, and location.” In truth, that might be, for example, location, convenient parking, and low prices. A computer store’s keys to success might be knowledgeable salespeople, major brands, and newspaper advertising. Focus is very important, and the keys to success framework helps you develop focus. There is what I call a law of inverse focus. I can’t prove it with detailed research but I’ve seen many times that, beyond three or four key items, the more items on a priority list, the less chance of implementation. Thinking about keys to success is a great way to focus on the main elements that make your business work. Explore Sales and Costs You also need to think about prices and costs. Ask yourself: • How much will the customers pay? • How many customers are there? • How many will actually do business with me? • How much will it cost me to deliver what each customer wants? You don’t need to answer these questions thoroughly or provide back-up research and documentation already — not yet, at least. That comes later as you develop the full business plan. What you do want is to have a good general idea of the answers before you proceed with a plan. Do worry about cost compared to price. You don’t need a detailed study at this point, but you do need to have a good idea. If the frozen dessert costs you $10 to make and you plan to sell it cheap in the summer at the beach, then maybe the business has a problem. You also have to cover wages and salaries, rent, and other fixed costs. Make sure there is an underlying business proposition. You don’t have to be the first of a kind, or the first in your market, to have a good business. Your community probably has lots of some kinds of businesses: restaurants, food stores, clothing. Many different kinds of business are so common, and they don...
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This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.

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