What makes a business successful? Defining success as an entrepreneur

Success in business means more than just making money – and every business owner has their own idea of what success looks like.

While profits matter, many entrepreneurs today measure their success in other ways that match what they genuinely care about.

Knowing what success means to you as a start-up owner can be helpful – and it can help you stay strong when times are tough and make better choices that align with your business goals.

Remember, too, that your definition of success may change as your business grows.

Your idea of success might involve being financially free, doing creative work, helping your community, or building something lasting.

When you can clearly state what matters most to you, your business dreams become real goals you can work toward.

Read on to find out what makes a business successful.

Knowing your “why?”

Understanding why you started your business is very important – your “why” is the main reason for doing what you do, and it often goes deeper than simply making money.

It can be about what drives you to work hard even when things get difficult – your “why” might be solving a problem you care about, being your own boss, using your special skills, or creating something new.

Business owners with a clear purpose can make better decisions, which means that knowing precisely why your business exists can make choosing which opportunities to pursue easier.

Your “why” acts like a filter, helping you focus on what truly matters to your vision.

Remembering why you started your business can help you keep going when times get tough – your purpose can give you strength when business challenges arise and connect you with customers who share your values.

Increasingly, people today want to support businesses that stand for something meaningful.

When you can clearly explain why you do what you do, customers who believe what you believe will naturally be drawn to your business.

Take time to write down your business purpose.

Ask yourself: “Why did I start this business? What change do I want to create? What would make me proud of my work even if I never become wealthy from it?”

Your answers will reveal your true definition of success and help guide your business journey.

Common ways to define success

Success could look different for each business owner, often based on their “why.”

It can be measured in various ways:

• making a steady income or achieving financial stability
• gaining personal freedom and a better work-life balance
• creating a positive social impact through your business
• building something that will last beyond your lifetime
• providing for and creating opportunities for your family
• growing personally and developing new skills.

Success might also include specific achievements, such as gaining a certain number of customers, launching a new product, or supporting local causes.

The roles of short-term vs long-term goals

Setting clear goals helps you track your progress and celebrate wins along the way.

Balancing short-term and long-term goals can be essential for lasting business success.

Short-term goals

Short-term goals can make long-term goals feel more achievable and keep you motivated.

They give you something to focus on right now, helping you run your business day-to-day and stay positive.

These might include:

• increasing monthly sales
• gaining five new clients
• launching a marketing campaign.

Long-term goals

Long-term goals can help keep your business moving in the right direction.

They provide the bigger picture, guiding your planning and growth over time, and might include targets such as:

• expanding into new markets
• launching new products
• building your brand. 

Setting realistic business goals for both the short and long term can help you make steady progress, maintain momentum, and adapt to changes, which enables you to build a strong business. 

Read our guide to setting realistic expectations as a small business owner.

How to measure success

Track different aspects of your business and your personal satisfaction to measure success effectively.

Financial reports, such as profit and loss statements and cash flow analyses, can show a business’s financial health. 

Accounting tools like QuickBooks or Xero could make financial tracking and reporting easier. 

Read our small business bookkeeping tips for success. 

Customer feedback from surveys or reviews might offer valuable insights into customer satisfaction and show what needs improvement. 

Tools such as SurveyMonkey and Feefo can help you gather and analyse customer opinions so you can act on them.

Also consider personal satisfaction – does your business match your personal goals and values?

Take time every month to assess your business numbers, but also how fulfilled and happy you feel.

Keeping a log to track this over time can help you check progress against your definition of success and adjust your plans when needed.

Adapting your definition of success over time

As your business grows, your personal and business goals could change.

Being open to changing what success means to you is essential.

It’s perfectly fine to update your idea of success regularly – this can help your business grow and adapt.

At first, success might mean staying in business or getting your first few customers.

Later, you might focus on growing bigger, building a good name, making more money, or having more time for yourself and family.

Outside factors like market changes, new technology, or changes in your personal life might also cause you to shift your goals.

Being flexible and willing to revisit and revise your plans could keep your business relevant and aligned with your current situation and values. 

Read more about growth strategies for start-ups.

What characteristics help make a business successful?

Successful businesses and entrepreneurs often share these key features: 

• a clear vision and business plan provide direction and purpose, keeping everyone working toward the same goals
• a strong company culture creates a positive work environment that attracts and keeps people who share your values
• good leaders motivate and empower teams, encouraging new ideas and proactive problem-solving
• a customer-focused approach helps to ensure that products and services meet customer needs, building satisfaction and loyalty
• engaged employees contribute to increased productivity and creativity
• good financial management involves effective budgeting, cash flow maintenance and making smart investment decisions
• adaptability helps businesses respond to market changes and seize new opportunities
• an effective marketing plan communicates a brand’s value to the right audience and helps to drive growth.

Consider what you might need to do or create to make your business successful.

What are your steps to business success?

When you know what success means to you, you can make better decisions that will grow your business while supporting your personal goals.

Think about taking time to consider your steps to success:

• what would business success look like for you in six months? What could it look like in five years?
• write down your success targets and the steps – big or small – you would need to take to achieve them
• regularly review your goals and the steps you are taking as your business evolves.

For further guidance, you might consider joining mentoring programmes such as those offered by the King’s Trust, or look at resources such as the Business Growth Hub.

By regularly reviewing and updating your goals, you could stay on a clear path to business success.

Read the Start Up Loans success stories.