A business is a repeatable process that:
- Creates and delivers a form of value…
- That people want or need…
- At a price they’re willing to pay…
- In a way that meets the customer’s expectations…
- So that the business earns enough profit to make it worthwhile for the owners to continue operation.
Stated another way, a business is a set of five Interdependent processes, and each one flows to the next:
- Value Creation. Finding out what people need or want, and creating it.
- Marketing. Getting attention and building demand for what you’ve created.
- Sales. Converting prospects into paying customers.
- Value Delivery. Giving your customers what you’ve promised, and making sure they’re satisfied.
- Finance. Bringing in enough profit to keep going and make your effort worth your time, energy, and resources.
In it’s most basic form, a business is simply a process of finding a problem and figuring out a way to solve it that benefits both parties. If you want to start a business, the best way to begin is to define what these five processes would look like.
To learn more about the five parts of every business, check out The Personal MBA by Josh Kaufman.
If you liked this post, you'll love getting my free business tips. In addition, you can get free updates via email.