Critical Components of a Successful Business

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Critical Components of a Successful Business
University Maryland University College

Professor Jerry Griffin
BMGT 110

What Are Some Key and Critical Components of Running a Successful Business?

Learning how to run and operate a business can be a big and daunting task. Many small businesses don’t even turn a profit for months or even years, and even if they do there is no guarantee that they will be around in a few years. Most of these small businesses, about 70 percent survive the first two years but after that the numbers decrease to “50 percent by the fifth year mark, and by the tenth year 82 percent have closed” (Boone & Kurtz p.152). If you want your company or business to succeed and grow you need to know a few important factors that will help it and they are: dynamic business environments, critical business functions, integration of individuals and systems, and ethical and social responsibilities that confront a business.

To start a company you need a plan, capital, and a location to start the company, but once you get those you need to be able to have a dynamic business environment. A dynamic business environment is characterized by the ability to respond to changing trends. One of these changes could be the aging of the population and its shrinking labor pool. As stated by Boone and Kurtz, “that by the year 2030, the number of U.S. workers 65 or older will reach 72 million, taking their experience and expertise with them” (pg. 20). Which means employers must find new and more sophisticated technology and people with more advance skills to help and replace the ones they are missing. Another area is that a business must respond to is the information systems changes. Computers systems are always in a state of change. Once they came up with one type of software, somebody else has already started trying to develop a new software system…...

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