Monday, November 07, 2011

A Strategy for a Successful Business

During my working days, I read about how companies such as Ford and McDonald's became great.  I noticed there was a pattern to how these companies became extremely successful.  Here is my summary:
  • Start with a great product.  Great means that it has broad appeal to consumers: right product and right price. 

  • Systematize production. Develop a process or system that enables repeatability of production or service.  Thus, consumers get the same great product or service every time.

  • Make the process scalable.  Enable the fast growth of the business through fast sales growth.

  • Expand.    This is the toughest and the most intensive part.    This involves doing the work to build the capability for fast growth:  facilities, employees, knowledge transfer and finances.
  • Many startups do well with great products.   To me, many busoness failures happen at the second and third steps which then prevents or leads to a poor expansion.  Both Ford and McDonald's were able to make it through all four steps and become tremendous business successes.
    For more on Strategies and Plans, check back every Monday  for a new segment.

    This is not financial or business advice. Please consult a professional advisor.

    Copyright © 2011 Achievement Catalyst, LLC

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