Customer service more important than luck for a successful business

WEST Midland business owners have poured cold water on the notion you need to be lucky in order to be successful, according to new research.

The study, conducted on behalf of online accounting and payroll software provider Sage One, revealed the majority of firms believed they were in control of their own destiny.

However, just 28% of the West Midlands respondents said they believed luck had an influence over the success of a business.

Good customer service (82%), a solid business plan (58%) and a strong network of contacts (56%) were cited as the most influential contributors to success.

The significance business owners place on luck was shown as partly determined by how well their business performed in the last financial year. For those companies which had performed poorly, the owners cited bad luck as one of the top three contributing factors.

Failing to create enough networking opportunities and being unable to react to changing situations were given as the two most significant reasons. Conversely, business owners who judged their firms have performed well did not list good luck as one of the top five reasons why.

Overall, the Sage One survey, which questioned more than 1,000 businesses, found that the UK’s small business landscape enjoyed a positive year, with 74% of companies reporting good business performance and 77% making a profit.

Companies from the West Midlands revealed the region’s focus on technology, with just under a third (31%) investing in new technologies in the last 12 months, and 38% planning to invest in new technologies in the next year.

“With growth comes opportunity, but you have to be ready to take advantage of it,” said Claire Carter, Head of Sage One.

“Luck will only take you so far. But if you have a good understanding of your firms’ finances and operations you can act decisively with confidence and turn a situation into a lucky one.”

She said the capability to plan and react quickly to business opportunities, as they appeared could be significantly boosted with the right software. This fact was echoed by 29% of those business owners who reported good performance over the last year, as they cited one of the reasons for their success as knowing how to use the right technology.

“There will always be a role for luck in business – that chance meeting or new product that comes out of a mistake for example. But the people getting ahead are those that load the dice in their favour,” she added.

“Business success is built upon sound planning, understanding, and agility. The days of the Del Boy wheeler dealer are numbered.”

Interestingly, Sage One’s survey also found that one in every 25 businesses has a lucky mascot.