If you are starting a new business, or looking to expand your company to the next level, it is important to take a look at those who have achieved this in the past. There are plenty of uber successful companies in the world, some in very different industries, but they all have some characteristics in common. Here are four specific strategies that all Fortune 500 companies have in common—try to emulate these qualities as you launch your own business.
Goal Setting
Setting goals may seem like an obvious business technique, however, not all businesses know how to effectively set and reach goals. Some businesses have ambitions, dreams, or wishes, but if you don't write down measurable, attainable, and realistic goals, your progress will be hindered. No company has ever transformed itself from a small entity to Fortune 500 levels without setting three types of goals.
- Mission: This is a brief overview of the company's purpose, and the major industry they are looking to serve.
- Long Term Goals: Companies should have an idea about their goals and projections for the next ten to fifteen years.
- Short Term Goals: Having lofty long term goals is not enough. Companies need achievable six month to one year goals that will help them along the way to their long term goal.
Companies such as McDonald's or Burger King are always looking to expand their market share, by entering new countries, adding new stores, and developing new products. While they focus on their short term goals in order to boost sales, they make plans so far in advance that they can quickly and successfully achieve their goals when it comes time to implement their plans.
Choosing the Right Markets
Choosing the right market is critical for the success of any company. All Fortune 500 companies entered markets based on the passion and knowledge of their founder. In addition, they found success in markets that had a history of success, and managed to contribute a new product or service that was not previously available in that market. Amazon.com is a prime example of this. They saw an untapped market of selling goods online, created a stellar service, and have not looked back since. As you make your business goals, you need to consider who you have created the product or service for, and who you want to market to. Many companies don't get the reactions or the sales they hoped for because they try to market to everybody. You need to realize that your product or service isn't for everybody. Don't chase after a market who will never be interested in your company—find loyal customers who share your same vision, and find more people like them.
Raising Capital
Many people don't realize that these huge, successful corporations didn't always have excess money to use for whatever they needed. In fact, many of them hardly had any money in the beginning. A lack of money didn't stop these now-successful companies from rising to the top, and it shouldn't stand in your way either. The initial period for any company is complicated, and this is the time when many companies get discouraged and throw in the towel. Remember, Fortune 500 companies did not magically start with billions of dollars in their accounts. These companies used a mixture of self funding, third party investment and a brave reallocation of profits during the first few years. The first four to five years of a company usually sets the tone for the long term. For example, Steve Jobs and Steve Wozniak took their computer ideas to several shops and investors during the 1970s, in a bid to raise as much capital as possible. You may have to take financial risks and make sacrifices in the beginning if you truly want to your business to succeed. These companies had success because they did whatever it took to find the funds necessary to make their business dreams come true.
Building a Team
Having a passionate and intelligent owner plays a big part in a company's long term success, but it is not the only factor. Current Fortune 500 companies hired incredible teams of individuals who brought their own ideas, philosophies and hard work into the company. Coca-Cola is an example of a company that has never been afraid to go with a talented, young CEO who demonstrates the kind of ideas that are necessary to take the company forward. The likes of Neville Isdell and Douglas Ivester have served them well over the past two decades. The key here is to develop a team of people who are passionate about the product, industry, or the cause of the company. While expertise and skills are important as well, you need a team who will think outside the box and use their passion to move the company forward with innovative, creative, and sometimes unconventional ideas.
As a business owner, you may feel light-years away from ever making it to the “big leagues.” Just remember: every company had to start somewhere. Even the huge tycoons of today started working out of their basement, or opened up a tiny burger shack, or had to sell their house to save the business. You have to start somewhere. When you get discouraged, reflect on these qualities that all Fortune 500 companies posses. Make sure your business has it's own customized plans and philosophies, but you will also benefit from drawing on the experience of these successful companies who came before you. Becoming a Fortune 500 company is a lofty long term goal, but it can only be achieved with clever short term planning. Information for this article was provided by the Calvin Center, a retreat center near Atlanta that hosts meetings, conferences, and events for companies of all sizes.