5 elements that are the basis for the success of any business
Basically every project or business consists of five interrelated processes, and the work moves smoothly from one process to another:
• Creating value: discovering what people need or want, or creating a need for it and then producing it.
• Marketing: drawing attention and building demand for what you produced (product/service).
• Sales: converting potential customers into actual buyers.
• Value Delivery: Giving customers what they have been promised and ensuring their satisfaction.
• Funding: Achieving enough financial income to continue and make the work worth the effort.
Always start with these five parts when planning a new business or analyzing an existing project as they will help you spot any major issues or gaps quickly.
In brief, every profit-making enterprise is an iterative and continuous process of:
• Create and communicate something of value.
• People want or need them.
• At a price they are willing to pay.
• In a manner that satisfies the needs and expectations of his customers.
• In order for the project to generate sufficient income to be able to continue and achieve profits for its owner.
It doesn't matter if you are about to create a small business or a billion dollar brand, if you omit any of these five elements, you will not have a profitable “business”. You will have something else:
• A project that does not create value for others is a hobby.
• A project that does not draw attention is a failed project.
• A project that does not sell the value it creates is a non-profit project.
• A project that does not deliver what it promises is a scam.
• A project that does not generate enough money to continue operations will close its doors soon.
These five parts form the basis of all good business ideas, plans, and projects. If you are thinking of starting your new business, the best thing to do is to identify and describe these five parts clearly, make sure they are interconnected and the work moves smoothly from one process to the next. If you can't plan your new business idea in terms of these core processes, you don't understand it well enough to make it work.
