What does Apple, Tesla, and McDonald’s have in common?
Well, I’m going to be sharing with you three surprising characteristics that these successful companies have.
That way, you can learn a thing or two from them and apply it into your own small business.
1.) Build A Sustainable Business
The number one characteristics of any successful businesses out there is that they build a sustainable business.
What I mean by that is that the core item and the core product that they have to sell is not a fad item.
Avoid Fads & The Hype
What does that mean?
That means that that product itself is not something that spikes up in demand, plateaus, and then drops off a cliff. For example something like the fidget spinner is a fad. It was super popular for a little while. However, after several months it crashed and burned. It was basically just hype. That means the interest only lasts for a very short period of time.
Imagine spending tons of money and time on marketing this product…just for it to completely drop off after 2 months. The thing is: if a product does not last for more than a season or two…that is not a sustainable business. I would recommend to never ever build a business based on hype.
You want longevity.
Avoid Seasonally Bound Items
Now, the second reason is also do not build a business based on seasonality. You do not want to have this huge spike during Winter, and then drop off and not make any money throughout the last three seasons.
At the end of the day, when you are running a business – it is very difficult to forecast your cash flow, to invest in marketing, brand building and all this good stuff when you only have business during one season. And that’s the biggest fall and the biggest mistake that I have made.
When I first started off with 720 Sweets, we built our product based on hype – we had this unique smoking ice cream.
Who doesn’t like smoking ice cream?
Everyone loved smoking ice cream, we had lineups out the doors for months to come. But little did we know we were actually building a business based on a hype item.
After people came through the doors, tried our smoking ice cream, and have taken pictures and posted on their Instagram…things completely dropped off that winter. We were barely scraping by throughout the whole winter season. And it was a very, very difficult time for us.
And that’s the reason why never ever build a business based on hype or seasonality.
Some tools to actually help you out, you can use Google Trends to find out whether the search term or whether the product you’re creating is a hyped item. And if it is avoid at all costs.
2.) Work On The Business, Not In The Business
The second characteristic is that you should always work ON the business and not IN your business.
Now this is a very difficult concept to gather when you first start off, because when you first start your business, you should always be working IN the business. That means to work on your business’ operations, processes, and product development.
If you’re running a restaurant, always work on customer service, always work on the product and quality of your items and your recipe.
Work in the business until you have something that works. Atleast until you found the product that works and you have found that groove.
Afterwards, you should transition into working ON your business. Your focus then becomes about: How do you grow it? How do you figure out the logistics? How do you make sure that you can brand this properly? How do you make sure that you can market this to the public?
A prime example is with Tesla. For a good 10 years, Elon Musk has been working on Tesla from 2010 to 2020.
And in those 10 years, interest was flat. That’s because he was working IN the business: on product development and figuring out the best product-market fit.
And when Elon finally figured out the product-market fit, how to make something so beautiful and something so sexy…he went to work ON the business. That transition flipped the switch for Elon to consider how to market the cars and how to get publicity.
When you go through this phase, you now see this hockey stick growth because now is the time to work ON the business for you.
When you’re first starting off your small business it is okay to work in your business with the operation with the hiring and wearing multiple hats all at once. But know for a fact that when you have found the right product when you have found the recipe transition into working on the business, that’s the key with any successful businesses out there.
3.) Build A Brand
The third way to build a successful business is to focus on building a brand.
What does that mean?
That means that you have customers who buy into you long term, they understand your values, they understand your culture, and they understand why you’re doing what you’re doing. There’s a reason why you created this business because ultimately, any business out there is a solution to a problem.
Now a lot of people go to create a business with the wrong perspective, they just think about a business as something that makes money. And that is a very bad perspective to have.
Because your customers see right through that they don’t want to transact with a brand that just looks at making money for the sake of making money. They want to support a cause and a purpose behind the business. That’s when you have longevity and that’s when you can charge a premium on your products. That’s when you actually are not worried about your competitors.
Give you an example: Supreme sold a $30 brick just because there is a logo of supreme on the break, they were able to sell it for $30 and resold for $1000 on Ebay.
Kanye West, sold a white plain white t-shirt for over $100! That’s the power of a branding.
Make sure you guys focus on building a brand over creating something just for the sake of making money.
So there you go, the three characteristics of very successful businesses that you should learn from and implement in your small business. These are the concepts that I actually expand on in my ACE formula, a training that I’ve created for you in a free masterclass in the link below.
So if you guys want to learn more about how you can actually apply these principles in your own small business, register for free here. That’s where I go in-depth about how you can build a successful restaurant using my ACE formula: Align, Connect and Explode.