Creating Value in Small Businesses.
Though business surrounds us every day, it is remarkably intimidating to understand how a business works. It is one of the most multi-disciplinary and complex areas of human experience. A business becomes successful when it provides or produces something that other people want or need and are willing to purchase it at a proposed price, in a way that satisfies the buyers needs by meeting their expectations and provides enough revenue to the owners to continue to operate smoothly. We tend to take business world for granted because it is so much a part of our daily lives. Every business:
- Creates and delivers something of value
- That other people need or want
- At a price that they are willing to pay
- In a way that customers’ expectations and needs are satisfied
- So that the business becomes worthwhile for the owner and can bring in enough profit to continue operations.
None of the above mentioned is difficult to follow or achieve, but are absolutely necessary to run your business successfully. There are two more business fundamental factors:
- People; and
A venture without value creation is a hobby, a venture is a scam if it does not deliver what it has promised. A venture that does not sell the value it creates is a loss. A venture which is unable to attract attention is a flop. A venture will inevitably close if it does not bring in enough money to continue operations. The core of every business is the collection of five interdependent processes which flow from one level to the next level.
- Value creation
- Value Delivery
These five points are the base of every good business idea or business plan. If you are able to understand and define these processes, you will have a complete understanding of how business works.
- The main reason why so many people want to start their own business is the independence associated with being your own boss.
- To work for yourself and earn rewards for yourself.
- These two are the biggest incentives for any small-scale business owner.
- Apart from these, there are some more reasons why small-scale business must be encouraged, which I am going to discuss in my future articles.
Survival of every business depends on benefiting people in some way because it is created by people.
- Firm knowledge of how people think and behave, how they communicate and make decisions is always required to understand how a business works.
- Though system is not a visible structure, it holds the business together and helps us find ways to improve the existing system by understanding the essentials of how complexly the current system works.
- Characteristics of a small-scale business are different from those of a large-scale business in many ways, which also justifies separate analysis of their contribution to the economic development and advancement of the country.
- Small businesses are vital to the success of the economy as they meet the local needs of the people as well as serve the requirements of large businesses.
- They serve as a support system of any developed or developing economy and can never be side-lined in national development.
- Small businesses have little hierarchy of command because of which they are quicker in decision making.
- They are well positioned to develop and introduce new ideas and are more flexible in nature.
- Due to small scale operations, small businesses have lower overhead costs and can be operated from small premises. They do not require large capital investment or big area to operate.
Starting a business can be risky and challenging, but armed with the proper tools and information, you can put yourself on the path to entrepreneurship. I have always emphasised on the importance of having a good website for your company and I am going to continue doing so! For more information on creating an effective marketing plan for your business, contact HyperEffects. We help enhance your customer service while building a sense of community, by getting a customer forum added to your company’s website. HyperEffects also helps companies get extravagant and enticing videos that could attract potential clients.
I am going to return with more interesting information for small business owners, so keep checking back!