SBW2014

1. OF SUCCESSFUL
BUSINESSES
What factors make Canada’s most successful businesses stand out? How do they operate differently to gain market
share and increase profitability? BDC looked at more than 1,000 small and medium-sized enterprises and identified
several factors that separate industry leaders from their competitors. The result? A fresh take on five tried-and-true
business fundamentals that any entrepreneur can apply to succeed.
1 HARNESS THE POWER
OF RELATIONSHIPS
YOUR COMPETITIVE EDGE:
KEEP SUPPLIERS CLOSE
Don’t
wait too long to get help
if problems arise and be
transparent with all your
stakeholders to facilitate
solutions.
2 PREPARE FOR SUCCESS
AND PLAN FOR CONTINUITY
REACH OUT FOR
ADVICE REGULARLY
CREATE A ROADMAP
3 ADVANCE BY INCREMENTAL
IMPROVEMENTS
Don’t
rest on your laurels:
innovation through a strategy
of small steps can bring
on big results.
4 MEASURE
PERFORMANCE
5 HIRE AND
KEEP THE BEST
Don’t
overlook the importance
of flexibility, trust and the
opportunity to develop as
part of a team.
Success strategies
✔ Review supplier performance regularly.
✔ Formalize relationships with a signed contract.
✔ Develop new products and services.
✔ Diversify across different markets.
of successful
businesses report
that at least 20%
of the products
and services they
offered did not exist
five years ago.
LEVERAGE
TECHNOLOGY
70%
of successful
companies
adopters or
early adopters
technologies.
Success strategies
1/3
are first
of new
✔ Tap the creativity of employees, customers
and partners.
✔ Set aside a budget to explore new ideas.
✔ Develop new products and services.
Success strategies
✔ Create detailed job descriptions and
conduct structured interviews.
✔ Encourage employee engagement with
onboarding, coaching and mentoring.
✔ Consider adding non-financial benefits to your
compensation package.
Success strategies
✔ Develop a medium- and long-term vision for your company.
✔ Perform regular SWOT analyses.
✔ Create an advisory board of members with varied business
backgrounds.
✔ Have a business continuity plan.
Success strategies
✔ Measure performance on a regular basis.
✔ Master cash flow.
✔ Set capital buffer and liquidity targets.
✔ Adopt detailed financial reporting practices.
DIVERSIFY YOUR
CUSTOMER BASE
~ 1 in 6
companies will
run into trouble
because they
lose a single
major customer.
★
Successful firms rank
supplier relationships
as the most important type
of business relationship.
33%
See supplier
relationships
as vital to
their success.
Successful firms
use advisory boards:
34% more than their
counterparts.
And use networking:
12% more than their
counterparts.
10%
more important
when it comes
to improving
the efficiency of
internal processes.
15%
more important
when it comes
to improving the
business model.
15%
more important
when it comes
to developing
new marketing
channels.
65%
of successful
companies have three
or more performance
metrics in place.
30%
have six or more
performance metrics
in place.
60%
of successful
companies are willing
to take at least several
months longer to hire
the right person for
key positions.
34%
of successful firms
have taken as much
time as needed to
hire only the best.
of all business
managers
viewed financial
management as a key
challenge in 2013.
of entrepreneurs
make cash flow predictions.
can compare
revenue targets against
actual results.
Successful
firms provide:
a more
stimulating work
environment than
competitors.
a more positive
company culture
than competitors.
better pay and
benefits than
competitors.
SMALL STEPS PAY OFF
For successful firms
continuous innovation is:
USE KEY PERFORMANCE
INDICATORS
FIND THE PERFECT FIT
DEVELOP NEW PRODUCTS
AND SERVICES
LEARN THE FUNDAMENTALS
OF FINANCE
GO BEYOND FINANCIAL
COMPENSATION
PREPARE FOR
THE UNEXPECTED
SMEs with
advisory boards:
18% higher sales
per worker.
More growth
in market share.
3x
higher revenue
growth.
70%
of successful firms have
medium-term business plans
with specific targets.
24%
have a detailed
roadmap for future growth.
~ 30%
of firms run into trouble
due to external factors beyond
their immediate control.
Don’t
leave contingency planning
until it’s too late. Make sure
your business can deal with
unexpected interruptions.
Don’t
underestimate the
importance of implementing
effective financial
management practices.
Succeeding in business is a continuous journey that requires discipline, diligence and frequent checkpoints to assess
progress. Entrepreneurs who rely on easily achievable strategies to navigate the day-to-day challenges of running a
business may already be several steps ahead of the pack.