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4 Essential Elements of a Strong Business Foundation

Updated: Jul 5, 2019

Having a good idea and product or service aren't enough to sustain a business. Anyone can have a good idea, but not everyone succeeds in creating a successful business. It can be hard to get your business noticed in this always online environment. If you want your business to be successful, you need these four essential elements of a strong business foundation.

Mission Statement

A mission statement supports your vision statement and represents your company's values. It helps you plan for the future and make correct decisions on which direction to take your business next. Your mission statement will unite employees under one inspiring goal. Look up the mission statements of your favorite companies to get an idea of how they are written. Clarify the purpose of your business, then experiment with writing it in various ways. Aim to be concise and inspirational. Once you have different versions written, you can choose the mission statement that's best.

A Well-Developed Sales Funnel

Your web pages need to be optimized in order to convert. Seemingly small changes, like the phrasing of your call to action or the button color of your CTA, can make a significant difference in conversion rates. You need a well-developed sales funnel to optimize your web pages for conversions. In order to accomplish this, you'll need to track your website's stats and split test (also referred to as A/B test). You should also understand what type of content works best for each stage of the sales funnel. Blogging is for awareness and interest. In the decision stage, you want well-written descriptions of your packages, sales pages and webinars.

Business Plan

A written business plan is necessary for all businesses. It's your rule book on how to run your business. Decision making is far easier and less stressful when you have a business plan to consult. The key sections that make up a business plan are:

  • Executive summary

  • Company description

  • Market analysis

  • Organization and management

  • Service or product line

  • Marketing and sales

  • Financial projections

If you want to get investors, then you need to show them your business plan.

Entrepreneurial Mindset

Running a successful business isn't just about technical aspects. Some argue the mindset component is most important. As the leader of your business, you set the tone. If you're struggling to stay organized and disciplined, so will employees you hire. Some characteristics of an entrepreneurial mindset include:

  • Optimism

  • Internal locus of control

  • Growth mindset instead of a fixed mindset

  • Discipline

  • Perseverance

  • Confidence

If you're weak in one of these areas of the entrepreneurial mindset, spend time on developing it to build a strong business foundation. Remember that your business starts with you and is led by you. Be the best you can be.

Ensuring you have the four elements of a strong business foundation in place increases your chances of success. Most businesses that fail within five years are missing one or more of these essential elements.

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