Is Your Business Right? The Right Business? Moving in the Right Direction?

 Is Your Business Right? The Right Business? Moving in the Right Direction?

Desalegn Terecha

Starting a business is a bold step, but ensuring that it is the right business and moving in the right direction is crucial for long-term success. Many entrepreneurs launch businesses with passion, but over time, they must assess whether their venture aligns with their vision, market demand, and profitability. This blog explores key indicators to determine if your business is on the right track, with real-life examples of businesses from startup to maturity.


1. Is Your Business Right?


Before diving into expansion and growth, ask yourself whether your business is right for you, the market, and the industry. The right business should align with:

Your Passion & Expertise: Do you enjoy what you do? Are you knowledgeable about the industry?

Market Demand: Is there a real need for your product/service?

Profitability Potential: Can the business sustain itself and grow over time?

Scalability: Does the business have room for expansion?

Example: Airbnb – Finding the Right Business

Airbnb started in 2008 when two designers, Brian Chesky and Joe Gebbia, rented out air mattresses in their apartment to make extra money. They realized a market demand for affordable and unique accommodation and turned their idea into a business. At first, their business wasn’t profitable, but they adapted by improving their platform, adding more listings, and focusing on customer experience. Today, Airbnb is a multi-billion-dollar company.

2. Are You in the Right Business?

Even if a business idea seems promising, it may not be the right fit. Some businesses struggle due to:

Limited market size

High competition

Regulatory challenges

Financial struggles

Example: Nokia – A Business Pivot

Nokia started as a paper mill in 1865 before transitioning into rubber manufacturing and later into electronics. By the 1990s, it became a global leader in mobile phones. However, by the late 2000s, Nokia lost its market position due to slow adaptation to smartphones. Nokia eventually shifted focus to network technology and infrastructure, finding a more sustainable and profitable path.

Lesson: If your business is struggling or declining, a strategic pivot may be necessary.

3. Is Your Business Moving in the Right and Intended Direction?

Once a business is running, it must move toward its intended goals. Business direction is measured by:

Revenue Growth: Is your income increasing?

Customer Base Expansion: Are more people using your product/service?

Operational Efficiency: Is your business running smoothly?

Innovation & Adaptability: Are you keeping up with market trends?


Example: Amazon – Scaling the Right Way


Amazon started as an online bookstore in 1994. Jeff Bezos had a long-term vision beyond books—he wanted to build the world’s largest e-commerce platform. Over time, Amazon diversified into electronics, cloud computing (AWS), entertainment (Prime Video), and logistics. Today, it is one of the most valuable companies globally, showing that steady, strategic growth leads to long-term success.


4. Key Gauges to Track Your Business Progress

To ensure your business is growing in the right direction, track the following key performance indicators (KPIs):

Financial Indicators

Revenue & Profit Margins – Is the business making money?

Cash Flow Stability – Can you cover operational costs?

Return on Investment (ROI) – Are your investments paying off?

Market & Customer Indicators

Customer Retention Rate – Do customers keep coming back?

Brand Recognition – Are people aware of your business?

Market Share – How much of the market do you control?

Operational Indicators

Employee Productivity & Satisfaction – Are your employees motivated?

Product/Service Quality – Are you maintaining high standards?

Supply Chain Efficiency – Are your operations smooth and cost-effective?

Example: Tesla – Monitoring Progress for Innovation

Tesla started in 2003, focusing on electric vehicles (EVs) when the market was dominated by gasoline cars. Initially, production was slow, and financial challenges arose. However, Tesla continuously monitored key metrics such as battery efficiency, production costs, and demand for EVs. Today, Tesla leads the global EV market because it consistently tracks and adjusts its strategies.

Final Thoughts: Building a Business from Startup to Maturity

Every successful business goes through stages:

1. Startup: Finding product-market fit (e.g., Airbnb renting out air mattresses).

2. Growth: Expanding customer base and improving operations (e.g., Amazon adding more product categories).

3. Expansion: Entering new markets and diversifying (e.g., Tesla expanding into energy storage).

4. Maturity: Becoming an industry leader and innovating continuously (e.g., Apple revolutionizing technology).

If your business is not moving in the intended direction, reevaluate, pivot if necessary, and track your progress with key indicators. Success is not just about starting a business—it


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