According to market research, only 20 percent of all startups achieve Business Success. A whopping 80 percent of new enterprises collapse within the first 18 months. This terrifying fact begs the question – what goes wrong for the 80 percent? The following are five things that entrepreneurs need to get right if they are to experience Business Success.

1. Have a Profitable Business Model

In most cases, success in business is measured in terms of profitability. If a planned business can only enjoy slim profit margins, it must be able to move huge volumes of inventory to get decent profits. If the market is saturated in that moving huge volumes is difficult, the business is likely to fail shortly after it starts. Entrepreneurs need to have a business model that is guaranteed to be profitable even when moving small volumes.

2. Great Management

One of the main reasons why 8 in every 10 startups fail is due to founder dysfunction or leadership breakdown. Entrepreneurs who have poor leadership skills will ultimately drive an otherwise profitable business down the drain. Business owners need to understand their strengths and weaknesses and hire business managers who have good leadership skills or any other quality they fall short on. Great managers will use the objectives, goals, vision and values with which the company was founded and grow the business to success.

3. Real Market Differentiation

Starting a business that offers a product or service that is already being offered by thousands of other businesses in the same area does not make sense if you do not have a competitive advantage. Your business and products needs to have a unique value preposition for it to succeed. In other words, you should give potential customers several reasons why they should come to you and not go to the competition. If you have nothing special or unique to offer, you may as well take your startup capital and flush it down the drain and save yourself some time and heartache.

4. Get Feedback From Customers

Customer is king, or so they say. In business, this statement could not be truer. Customers bring in revenue so they are your greatest asset. Fortunately, there are dozens of ways to communicate with your customers and get feedback from them. Social media is one of the most popular communication channels nowadays. Responding to comments and concerns urgently in a polite and informal manner is important as it will get customers talking.

Achieving Business Success is the ultimate goal of every business. With these four pointers, any startup can survive past the 18-month mark and grow into a successful enterprise.