What Defines a Business?

We all talk about business in many different ways. I often have the discussion and ask the question do you have a business or a job?

I felt it timely to put down what determines and defines a business.

Much of this material is from the ‘Personal MBA by Josh Kaufman which is great book, I highly recommend reading it.

“A business is a repeatable process that makes money. Everything else is a hobby.” By Paul Freet

It is a repeatable process that

  1. Creates and delivers something of value.....
  2. That other people want & need…..
  3. At a price they are willing to pay…..
  4. In a way that satisfies the customer’s needs and expectations…..
  5. So that the business brings in enough profit to make it worthwhile for the owner to continue operations

At the core of every business is fundamentally a collection of five interacting processes each of which flows onto the next.

  1. Value Creation – Discovering what people need or want, then creating it
  2. Marketing – Attracting attention and building demand for what you created
  3. Sales – Turning prospective customers into paying customers
  4. Value Delivery – Giving your customers what you promised and ensuring that they are satisfied
  5. Finance – Bringing in enough money to keep going and make your efforts worthwhile

Business is not rocket science – it’s simply a process of identifying a problem and finding a way to solve it that benefits both parties.

These five parts are the basis of every good business idea and business plan. If you can clearly define each of these five processes for any business you’ll have a complete understanding of how it works.

If you’re thinking of starting a new business, defining what these processes might look like is the place to start.

If you can’t describe or design your business ideas in terms of the core processes, you don’t understand it well enough to make it work.

Simply Business has been established to work with companies and individuals to simplify the business complexities. We have become too complex with the end result of business failing or failing to reach their full potential.

We are business improvement specialists with the objective to -

“To help business or individuals reach their full potential”

We propose to do this by the following means

  • Fortnightly Newsletter
  • Building a ‘Tool Shed’ which is our resource centre with a range of resources to help deliver our goals. Membership options available in 2013
  • Advisory team to provide training facilitators to help companies bridge their gaps
  • Self-Education Centre – Do it yourself modules or programs on a pay as you go basis offered in a range of delivery options
  • Seminars on a range of topics

For more information contact Philip Coombs, Director, Simply Business Australia

Mobile: +61 419 834 678

Email: phil@simplybusinessaustralia.com.au