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Five Steps to Business Success

John Costen

Updated: Jan 13



THE TWO OBJECTIVES OF A BUSINESS ARE: 1. MAKE A PROFIT 2. SATISFY THE CUSTOMER/CLIENT


Five Steps to Business Success


1) Product/Service, Marketing and Growth:

  • Product/Service: The first step to a successful business is providing a quality product/service that is needed and or wanted by customers/clients. Is the sale one time or recurring in the future. If a recurring sale, how often? The products/services must be provided in a timely and productive/efficient manner. Could a patent be obtained on a new product? Could complimentary products/services be offered?

  • Promotion: Focus on repeat business, referrals, etc. To obtain sales leads advertise via website, social media, print media, direct contact with potential customer/client, etc. Consider a Marketing Consultant

  • Place: Where is product/service to be sold?

  • Price: Is price competitive? Having a quality product/service may limit price competition.


2) Profit Fundamentals and adequate financing:

  • Business owners must understand financial reports to maximize profitability. Financial results are shown on the business income and cashflow statements and balance sheet plus the personal net worth statement. Business performance must be evaluated utilizing Financial Ratios and other business results.

  • There must be minimum annual/monthly targets such as business owner remuneration, product gross margins, hourly charge out rates, sales, etc.


3) Accounting system, Business Structure, Risk Management, Tax Optimization:

  • Accounting records must be up to date as well as be current with all government filings and payments such as HST, payroll, income tax, accounts payable, etc.

  • Accounts receivable must be monitored continually for delinquent accounts.

  • Risk Management can be accomplished by way of business structure and insurance.


4) Team of quality Ownership, Employees, Sub-contractors, Suppliers and

Professionals. Professionals include accountants, bookkeeper, lawyer, marketing consultant, etc.

5) Correct Decision making:

  • The difference between a successful and unsuccessful business is the business owner making correct decisions. The business owner must set daily/weekly priorities and short term and long term goals.

  • An in depth, written Business Plan is extremely important as it provides guidance for the business owner to attain business success. However, sometimes a

    business may have to pivot their focus to remain viable and profitable.



Article written by John Costen, CPA, CGA, CFP

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