A Simple Formula for Business Success
Three essential elements that make or break any business
For a business to succeed, you need three critical elements:
A profitable product/service
Enough people who want it, can afford it, and are willing to pay for it (at the right price)
To find these people, get their attention, and help them make a buying decision
If your business isn't working, at least one of these three elements isn't right. It really is that simple.
But simple isn't the same as easy. Each element involves countless variables - some within your control, many that aren't. Market conditions change, competition evolves, and customer preferences shift.
Let's break down each element and look at some practical ways to get them working in your business.
1. A Profitable Product/Service
What Does "Profitable" Really Mean?
Your product or service needs to make more money than it costs to create and deliver - and not by a small margin. You need enough profit to pay yourself, reinvest in growth, and build a sustainable business.
The Revenue Trap
Here's a common scene: A business is bringing in thousands in revenue, but the owner can barely pay themselves. Why? Because revenue isn't profit.
A £10,000/month business making 5% profit (£500) is worth less than a £5,000/month business making 40% profit (£2,000).
The Components of Profitability
Your revenue (money in) needs to pay for a lot of things, including:
Direct costs (materials, labour, delivery, etc.)
Overheads (premises, software, equipment, etc.)
Marketing and sales costs
Your time (yes, you should factor this in!)
Future business growth
Taxes!
Where Businesses Go Wrong
The biggest profitability killers are:
Underpricing ("I'll make it up in volume!")
Underestimating costs (especially overheads - the little things add up quickly)
Taking on customers that cost more than they're worth
Not tracking the right numbers
Know Your Numbers
True profitability means understanding your core metrics:
Track every cost, no matter how small
Know exactly what it costs to acquire each customer
Monitor profit margins on each product/service
Review and adjust your pricing regularly based on real data
The Early Days
Most businesses need time to become profitable as they build momentum, fine-tune their offer, and grow their customer base. This is why keeping your day job initially can be a smart move - it gives you breathing room to grow your business and become truly profitable without the pressure of needing it to pay all your bills immediately.
Just don't fall into the trap of using your salary to subsidise an unprofitable business model forever. If your business isn't profitable on paper, adding more time or money won't fix the underlying issue.
2. Enough People Who Want It, Can Afford It, and Will Pay Your Price
The Market Reality Check
Having a profitable product is only half the battle. You need enough people who:
Have the problem your product solves
Have the means to pay for it
Are willing to pay your price
Size Matters
Your market needs to be large enough to support your business goals. A small, high-end market can work if your margins are healthy. A larger, lower-margin market can work if you can reach enough customers efficiently. But a small market with low margins? That's a recipe for disaster.
Common Market Assessment Mistakes
Assuming everyone is your customer
Overestimating how many people will pay your price
Confusing "interest" with "willingness to pay"
Understanding Your Market
Successful businesses know:
Exactly who the ideal customers are
What these customers currently pay for similar solutions and are willing to pay for yours
What makes them choose one solution over another
Setting Yourself Up for Success
Focus on finding the sweet spot where:
Your product is profitable
Customers see clear value in your solution
Your price aligns with what they're willing and able to pay
The total market size can support your business goals
Remember: "Interested" customers who don't buy are just window shoppers. Build your business around people who not only want what you offer but are also ready and able to pay for it.
3. To find these people, get their attention, and help them make a buying decision
The Marketing Challenge
Even with a profitable product and a viable market, your business won't succeed unless you can:
Find your potential customers
Cut through the noise to get their attention
Convince them that your solution is worth buying
Finding Your Customers
Your potential customers are out there, but where? They might be:
Searching online for solutions
Following specific social media accounts
Members of certain communities
Reading particular publications
Shopping in specific places
Working in particular industries
The key is to identify these locations and focus your efforts where your customers actually are, not where you want them to be.
Getting Attention
In today's noisy world, getting attention means:
Being where they are when they're ready to listen
Having a clear, compelling message
Speaking directly to your customer's needs
Standing out from competitors
Staying consistent with your marketing efforts
Converting to Sales
Getting attention isn't enough - you need to turn interest into sales:
Make it easy for customers to understand your offer
Remove barriers to purchase
Handle objections effectively
Guide customers through the buying process
Build trust and credibility
Finding What Works
Success in marketing and sales usually means:
Testing different approaches
Measuring what works (and what doesn't)
Focusing on methods that are cost-effective
Building systems you can repeat and scale
Continuously improving your process
Know Your Customers
Take time to create detailed customer personas. Go beyond basic demographics and understand:
Their goals and aspirations
Their daily challenges and frustrations
What motivates their buying decisions
Where and how they like to be communicated with
What they truly value
This deep understanding helps you create marketing that resonates and brings real value to your customers' lives. Don't rush this step - it's the foundation of effective marketing.
Remember: Marketing isn't about taking a scatter-gun approach and trying everything simultaneously - it's about experimenting to find what works for your business and doubling down on it.
Putting the Pieces Together
To build a successful business, you need:
A profitable product/service
Enough people who want it, can afford it, and will pay your price
To find your these people, get their attention, and help them make a buying decision
If your business isn't performing as well as you'd like, one of these elements needs work. The good news? Once you identify which one, you can focus your efforts on fixing it.
But even with all these elements in place, there's one more crucial ingredient for success: barakah. Without Allah's blessing, no business will ever be successful, even if it makes billions in profit every year, because true success is about a lot more than just money.