- Purpose. There is a compelling (i.e. clear) reason for doing business with you. The clearer that reason is, the more likely your business will succeed. In more specific terms, you must answer the question: “Where does this business fit into my customer’s life?”
- Timing. Your business must come at the right time – that is, when the market is ready for it. The more open your market is to your business, the more likely it will be to succeed. Thus, your primary question with timing should be: “Who is most likely to buy this product – to see exactly where it fits into their lives – and spread the word about it?”
- Positioning. Your business must be clearly defined, uniquely differentiated. Your customers must be able to verbalize the difference between your business and another business in the same category. And the best situation is if you are the only business in that category – if you created the category. The more differentiated your business is, the more likely it is to succeed. Ask yourself: “What capabilities can my business provide my customers that no one else is providing, or is providing very poorly?”
- Leadership. Your business must be a leader, which is to say, it must change the whole landscape of your industry. It must be a game-changer. Facebook, Airbnb, iPhones – these were game changers. The more your business transforms the game, the more likely it will be to succeed. Ask yourself then: “How will my business change the way my customers currently do things? How can I make their lives irreversible?”
- Organization. Your business must be well-organized, which is to say, it must be efficient. It must be able to make changes quickly and at very little cost. It must have systems in place for handling every aspect of the business (R&D, accounting, marketing, etc.). The more efficient your business is, the more likely it will be to succeed. Ask yourself: “How can I make this run as smoothly as possible, so if I were to pull away from the business, it would run just as smoothly?”
Of course, gaining all these advantages is not at all easy. But the more advantages you have, the more strongly the balance tips in your favor. Every day, your focus should be on trying to increase these advantages, asking yourself these questions continuously.