Over the past ten years, we have studied hundreds of different businesses and have identified three characteristics every successful business possesses. These are: 

Appeal, Profitability, and Sustainability. 

They are interconnected, meaning you cannot have one without the other. 

• A business will only be profitable if it appeals to its target market. 
• A product or service that is appealing but unprofitable is unsustainable. 
• A product/service that is neither profitable nor desirable will never be sustainable.

Most successful businesses are appealing, profitable and sustainable. To achieve this, you must implement the following steps into your business.

A Profitable Market (PM)

1. Your market size must be big enough for your business to thrive.
2. A proven need or demand for your product or an alternative must exist.
3. Your target market must be easily accessible.
4. Your target market must be able to afford your product.

Product or Service (PS)

Your product/service must meet customer expectations and satisfy their needs and wants, but more is needed to guarantee success.

Engine Optimisation (EO)

Business success depends on your Product/Service first being noticed by the Profitable Market through effective marketing campaigns; then by selling enough of your Product/Service to have enough Cash (C) to repeat the process.

This is called the Engine (E) of your business. 

The more efficient the Engine is, the more profits you make. This system is called Engine Optimisation (EO).

Engine Optimisation (EO) is mainly an internal process.  

Marketing & Sales - A successful business has a proven method of ensuring its target market knows its product and can sell it effectively.

Operations - A method of operating smoothly, with the right technology and human capital, to profitably get their products to their target market.

Financial Management - Robust financial management ensures a business can be profitable and sustainable.  Successful companies understand when they need to find additional capital to invest in resources and technology to ensure the sustainability of the business.

Strategy - The success of any business is determined by the effectiveness of the strategy it follows. A strategy explains how a company plans to compete in a market and grow at a profit.  Successful businesses regularly review their performance, market, and competitors and continually improve.

Businesses are also subject to several external threats you have to overcome.

Competition (C) from other businesses is the main external threat. Businesses can also be negatively affected by Market (PM), Economic (E), Political (P) and Technological (T) factors that need to be monitored regularly.

To put this simply, you need to possess the following:

1. Profitable Market - Big enough to achieve your ambitions (There has to be a demand for your business)
2. Good Product - It has to satisfy the expectations of your target market. But it would help if you aimed to be the first or best.
3. Engine Optimisation - Your business must reach enough of your target market to make enough sales and profit. Robust systems must be in place to ensure the profitability and sustainability of the business. 
4. Working Capital - Enough cash and resources to repeat the process (Enough working capital)
5. Business Analysis - A process that helps your business evolve according to market conditions and stay ahead of your competition.