In short: key success factors are the three to five things that must go right for your business to succeed — what makes customers choose you, the skills or resources you must have, and the habits you must keep every day.
Three Kinds of Success Factors
| Kind | Question | Example |
|---|---|---|
| Customer | Why do customers choose you? | Fast and friendly service |
| Resource | What must you have? | A reliable flour supplier |
| Habit | What must you do every day? | Bake in small batches every two hours |
How to Find Yours in 3 Steps
- Ask what customers value most, based on your research.
- Ask what would break the business if it went wrong.
- Keep the three to five that matter most, each as a short phrase.
Fill-In Worksheet
Answer these questions in a few words each. Your answers become this part of your plan.
- What do customers value most when they choose a business like ours?
- What would break our business if it went wrong?
- Which skill, supplier, or location must we have?
- What must we do every single day?
Examples (Illustrative)
Illustrative example — a small bakery
Freshness every morning · Service in under three minutes · A reliable flour supply · A good location near offices.
Illustrative example — a phone repair shop
Repairs done the same day · Honest prices shown before work starts · A reliable supplier of quality screens and batteries · A skilled technician who keeps learning new phone models.
Common Mistakes
- Listing everything. If everything is key, nothing is.
- Being vague. "Good quality" is weaker than "bread less than two hours old".
- Ignoring the hard ones. Be honest about what will be difficult.
Where It Fits in Your Business Plan
Key success factors belong in the Business Overview section. They connect to your unique value proposition and your risks.
Frequently Asked Questions
What are key success factors?
The few things that must go right for a business to succeed.
How many key success factors should I list?
Three to five.
What is the difference between key success factors and a unique value proposition?
Success factors are everything that must go right. The value proposition is the one advantage that makes customers choose you.
Can key success factors change?
Yes, as your business and market change. Review them every year.
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