As a modern manufacturer, you know that growth isn't just a business goal-it's an imperative for staying in business given the intense competition you face. So it probably won't surprise you that a recent survey by Epicor and MORAR Consulting showed that most manufacturers expect to grow their businesses in the next 12 months.
However, what probably will surprise you is business growth itself. It's true: surprises are bound to happen as a business grows regardless of how prepared an organization may be (or thinks it is). The good news is that despite the uncertainty involved in growth, there are several proven factors you can count on to help you weather the unexpected and grow successfully-if you implement them.
A Successful Manufacturer's Checklist for Managing Growth
The survey by Epicor and MORAR uncovered five factors that manufacturers who reported growth in the past 12 months said were essential to their success. Use these five keys as a starting point to help determine whether your organization is set for success-or has room for improvement:
1. Good planning. According to 60% of respondents, thorough planning was the top factor in their successful growth. What drives good planning is having ready access to accurate and timely information. Without the right data, it's impossible to fully understand what's happening in your business, and this leads to mistakes and bad decision-making.
2. Hard work and determination. Nearly half of manufacturers cited good old hard work and determination as key to their success. Without these fundamental aspects in place, the other items on the list fall flat-with the exception of number four on the list. Without the right technology, it doesn't matter how hard you work.
3. Agility and response to market demands. As global competition increases, responding to customers and adapting to market changes fast are essential to staying ahead. A lack of agility can lead to non-existent growth, lost revenue, and missed opportunities as your business is unable to add new products and services, enter new markets, or retain customers.
4. Right technology in place. IT drives businesses everywhere, manufacturing included. Without it, outdated, standalone systems and organizational silos will waste time and energy. Managing overseas operations will be difficult and time-consuming, and scaling your business operations will be challenging-thus limiting growth potential.
5. Staff with the right skills. Developing and retaining skilled staff is essential to business growth. This also ties in with having the right technology -you don't want employees struggling with complex systems which lack desirable features such as mobile access, or leaving the company because they feel burdened with non-value add tasks.
Uncertainty may be inevitable in business growth, but paying close attention to these five key areas will go a long way toward ensuring your company's successful growth now and in the future.
Read our new eBook to learn more about what it takes for manufacturers to grow successfully today.
FAQs
What are the 5 critical success factors?
- Strategic Focus. This refers to the roles of leadership, planning, and management and incorporates these key elements: ...
- People. Staff should be chosen based on personal strengths, talent, and attitude. ...
- Operations. ...
- Marketing. ...
- Finances.
These process selection drivers include the following:
- ★ Quantity of the product.
- ★ Cost for tooling, manufacturing machines and equipment.
- ★ Time required for processing.
- ★ Level of skilled labor required.
- ★ Process supervision.
- ★ Energy consumption.
- ★ Availability of material and cost of material.
Five Proven Success Factors for Manufacturing Growth
- Good planning. According to 60% of respondents, thorough planning was the top factor in their successful growth. ...
- Hard work and determination. ...
- Agility and response to market demands. ...
- Right technology in place. ...
- Staff with the right skills.
Writing A Business Plan: 5 Keys To Your Success
- Put Your Audience First.
- Keep Your Business Plan Brief.
- Sell, But Don't Oversell.
- Don't Downplay Your Competition.
- Envision the Long-Term But Plan For the Short-Term.
Success in any endeavor, whether personal or professional, often hinges on a combination of essential attributes and behaviors. The 5 Cs - Curiosity, Commitment, Consistency, Clarity, and Collaboration - form a framework that can guide individuals toward achieving their goals and aspirations.
What are the 5 keys to success? ›
The 5 Key to success
- Confidence. Confidence requires that young people not be overly concerned with what others think if they make a mistake. ...
- Persistence. ...
- Organisation. ...
- Getting Along. ...
- Emotional Resilience.
Five factors of production are land, labor, capital, entrepreneurship and knowledge. Land: Land is the natural resource on which we build our buildings and cities. It can be used for farming and forestry. Labor: Labor is any human activity that creates value or utility.
What are the 5 manufacturing processes? ›
- Repetitive manufacturing. A manufacturer uses process types like repetitive manufacturing for repeating production to commit to a production rate. ...
- Discrete manufacturing. ...
- Job shop manufacturing. ...
- Continuous process manufacturing. ...
- Batch process manufacturing.
The five principles of manufacturing are, defining value, mapping the value stream, creating flow, establish flow, and pursue perfection.
- Defining value. As mentioned previously, lean manufacturing principles aim to add value to the end user. ...
- Mapping the Value Stream. ...
- Creating Flow. ...
- Establish a Pull System. ...
- Perfection.
Manufacturing Success Factor #1: Speed and Execution
Pick any business and any market. Moving faster and being more responsive is always better. That said, customer focus is essential to make sure you're moving fast in the right direction.
Market research can help identify key success factors related to product innovation, pricing strategies, distribution channels, and customer relations. Additionally, you can use competitor analysis to examine competitors' strengths, strategies, and weaknesses in your industry.
What are the basic success factors? ›
There are five major key success factors, and they are:
- Strategic focus. This key success factor relates to an organization's leadership and strategy. ...
- People. This refers to the human resources in an organization. ...
- Operations. An organization's operations refer to the normal functioning of its business processes. ...
- Finances.
Examples would include agility, reliability, diversity and emotional connection with clients. Key success factors are one of three elements a company's management team must articulate as part of its strategic planning process, with the others being its strategic goals and its strategic scope.
What are the 5 C's of a business plan? ›
This framework assists businesses in understanding their position in the market, identifying potential challenges and opportunities, and making informed strategic decisions. The 5C's include Company, Customers, Competitors, Collaborators, and Climate (or Context).
What are the 5 success criteria? ›
Characteristics of Good Project Success Criteria
Effective criteria are established using the SMART goal framework: Specific, Measurable, Achievable, Relevant, and Time-bound.
What are the 5 keys of business success? ›
First, here are the 5 Key Success Factors:
- Strategy (Strategic Focus, Leadership, Management, Planning)
- People (Personnel, Staff, Learning, Development)
- Operations (Processes, Work)
- Marketing (Customer Relations, Sales, Responsiveness)
- Finances (Assets, Facilities, Equipment)
