Five reasons why brilliant creative businesses succeed

Person wearing red trainers walking up stairs - success concept.

Thwarted by the idea of your creative business failing – before you’ve even got started? It’s true that many small businesses fail in their early years for various reasons, like lack of funding, poor market research or ineffective marketing. But what about the reasons why they succeed? 

Knowing the success factors for thriving creative businesses could help you overcome any stumbling blocks you’re facing so you can take action and pursue your dream. Here are our top five reasons why some creative businesses reach the great heights of success.

1. Strong ‘why’

Successful creative entrepreneurs have a laser-sharp focus on their ‘why’ – that core belief about why they do what they do: their cause, mission and inspiration. It’s the reason for that idea sparking in the first place.

Your ‘why’ probably won’t be just about making money. Often, it’s about change. Doing something that lights you up and helps you live a better life. Or maybe it’s about helping others to thrive. Your ‘why’ should stay with you throughout your business journey, keeping you grounded and giving you something to revisit if you lose track of your vision.

2. Viable product or service

Achieving a good market fit is vital to the prosperity of any business. It means that your product or service satisfies the needs of customers in a given market. Market fit doesn’t just come about by happy coincidence; it means ensuring there’s enough demand for your offering and that people will pay for your solution to their problem. (And pay enough to make your product profitable.)

3. Unique value proposition

It’s vital to be crystal clear on your business’s value proposition – why your product or service is better than the competition. This is a unique identifier that tells customers what you offer and why they should purchase what you sell. Strong value propositions are very specific, focusing on how your business solves customers’ pain points.

4. Good financial health

Crunching numbers isn’t the most appealing task of running a business, but it’s a necessity. Successful creative entrepreneurs know how to attract funding, work to budgets and manage cashflow effectively. Good financial health involves continually planning and organising, minimising costs, chasing payments and forecasting. You should also regularly monitor financial performance and track key metrics like revenue, expenses, net profit, operating cash flow, working capital, accounts receivable and gross profit margin.

5. Perseverance

Every creative entrepreneur experiences obstacles during their business journey. Perseverance is a crucial quality that all successful entrepreneurs have – the ability to get back up after failing or making mistakes. It’s how dreams and ideas get turned into reality. Setting clear goals can help you persist – break them down into small, manageable steps so you can celebrate your progress. Ultimately, you need to hold onto the belief that your end goal is reachable. (Going back to your ‘why’ helps!)

A strong ‘why’ and ensuring your product or service is viable is key to achieving creative business success. As is having a strong value proposition and understanding your business finances. Personal qualities, like perseverance and positivity, also have a big part to play. These powerful traits will keep you focused and heading in the right direction even when you experience hurdles during your business journey.

Want more information on how to succeed as a creative entrepreneur? We’ve got you covered – check out our Zoom Dive recordings for topics like transforming your creative idea into a business reality and what my entrepreneurial journey has taught me (lessons from someone who’s been in your shoes). 

Why not subscribe to our newsletter (at the bottom of this page) to never miss another Journal article?