Back to Basics – A Brief Introduction to Business
What is a business? Why do people start a business?
One of the best definitions of a business comes from Brad Sugars in his book Instant Cash flow. He defines a business as:
- A Commercial, Profitable Enterprise, That Works, Without Me!
What does this mean? Let us break the statement above into 3 different parts. First, take a look at A Commercial, Profitable Enterprise.
- Commercial: Your product must have a high commercial value in order for people to buy them. This means that there must be a market demand for your product. If your product demand is low, it will be an uphill task for your business.
- Profitable: Your business must be profitable. In other words, your business is making money. No one wants to operate a business that is losing money in the long run.
- Enterprise: Your company is an enterprise. I’m pretty sure you don’t want to build a company with only one or two persons. You must establish an enterprise. You may start with one or two persons at the beginning, but in time, you will want to create more job opportunities for others while you expand your business.
The second part of the equation – That Works, requires all of the three components above to be integrated into a workable system.
The third part is the most important and challenging part of the definition. It is the Without Me concept. This goes to say that your business must be able to run under a system independently, without you operating in it.
Ask yourself this, “Can my business operate as usual if I take a 3 months’ leave from work? If the answer is yes, then your business is a commercial, profitable enterprise that operates independently without you.
In order to achieve a business of such magnitude, there are many aspects that we need to look into and all sorts of systems that need to be implemented around it, including, hiring the right type of people to work for you.
One of the most important elements that you must establish for your business is your marketing strategy. Once your marketing direction is set, it will help to generate sales and bring in profits to ensure the sustainability of your business.