The Foundation of every successful Business......... #4
- Adrian Dionisio - business737 owner
- Oct 16, 2020
- 3 min read
Updated: Mar 17, 2024
The ultimate success of any business is based on the same principles. These fundamental principles of business have proved to be relevant throughout the ages.
“Business is about making profit by giving people what they want.”
The underlying principle of all business is to offer something of value that people want. All successful businesses sell the promise of some combination of the following "valuable wants":
Money
Status
Power
Love
Knowledge
Protection
Pleasure
Excitement
Free time
The more you communicate and make it known how your business offers one or more of these valuable wants, the more successful your business will become.
Make someone's life a bit better: Without this "value creation" a business cannot exist
Every successful business creates something of value. You cannot transact with someone unless you have something valuable to trade. The best businesses in the world are those which create most value for other people. Some businesses thrive by providing a little value to many, others are profitable by providing a lot of value to only a select few. The more real value you create for other people the better your business will be and the more prosperous you will become.
" Starting with value creation, every business is a collection of 7 interdependent processes"
The 7 vital process of any and every business
1. Value creation: Discover what people want and create it.
2. Marketing: Attract attention and build demand for what you've created.
3. Sales: Turning prospective customers into paying customers.
4. Fulfilment: Giving customers what you've promised and ensure they are satisfied.
5. Finance: Bring in enough money to keep going and make your effort worthwhile.
6 Feedback, Development & Innovation; these 3 interlinking processes ensure the business keeps moving forward with intent, purpose and momentum
7. Strategies: The must be a strategy for the smallest to the biggest activities of any business, all contributing to the successful functioning of the whole.
There are 7 fundamental processes that every successful business implements. Every successful business, past, present and future are built upon these foundations. Use them, incorporated them and apply them and your business will grow with accelerated profit.
"Every business is created by people to benefit other people".
The 7 principle processes of every business can be thought of in an even simpler way. These fundamental concepts of business are not complicated however they must not be overlooked. Every good business idea, business plan and successful business provides the following:
Something of value.
That other people want or need.
At price they are willing to pay.
In a way that satisfies the customers needs and expectations.
In a way that brings the business sufficient profit to make it worthwhile for the owners to continue operation
The business evolves by constant testing and also trying new things to improve
At every stage the must be an intention & aim, with the bigger picture always in mind.
If you take any one of these 7 factors away you don't have a business. Ensure you are able to understand and explain these core processes and focus on improving skills related to these.
Develop yourself with respect to these 7 parts of business and the result will be growth and accelerated profits. Any skills that help you create value, market, sell, deliver value or manage finances will ultimately be economically rewarding.
You will never have all the answers so just know the essential questions
You will never have all the answers so of more importance is to know the essential questions related to your business.
These questions will lead you to the handful of answers that will allow you to grow and become more profitable.
Remember that the best businesses provide the most value to people. Always keep this in mind in all your processes and decision making. Discover what people and want.
Your profit depends on people wanting what you have to offer so always question, analyse and discover the needs and wants of people. As always knowledge is key.
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