Running Small Businesses.
Though it surrounds us every day, it is remarkably intimidating to understand how business works. We tend to take the business world for granted because it is so much a part of our daily lives. Business 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 at a proposed price, in a way that satisfies the buyer’s needs by meeting their expectations. It should also provide enough revenue to the owner, in order to continue operating smoothly.
Every business requires investment at the initial stage, without which starting up a business is not possible. The money that is spent to create, develop, run and expand a business with the expectation of future returns is called investment or capital. Sufficient profit is required to continue production and operations. None of the above-mentioned things is difficult to follow, however, they are extremely crucial for the success of a business, no matter what business you are in. If you want your business to work, you have to keep all of these factors in mind.
Pillars of Success
Five main pillars of a successful business are value creation, customer demand, transactions, value delivery and profitability. A business cannot run without these. Other important factors are market research and marketing. Market research involves surveying the market to know what people are interested in. Marketing is making them aware of the product that your business can offer, attracting their attention and making them interested in buying it. Try to find out what are the projects your competitors are targeting within your market segment, assess if you can develop an offering that can win those businesses from them. Since you are still new to the industry, competitors do not know you yet. Use that to visit your competitors’ showrooms, if any, anonymously, like any regular customer and collect valuable input to use in your research. Do not think this as unethical, after all, we all learn from watching.
Customer satisfaction is also an important part of business which depends on reliability and exceeding customer’s satisfaction by good customer service. In order to close a sale, people have to trust your product, which will happen only when you deliver what you have promised. This is called value delivery.
People and System
There are two more factors fundamental to a business – people and system. Survival of every business depends on benefiting people in some way, because they are the ones who make it successful. Firm knowledge of how people think and behave, how they communicate and make decisions, is always required to understand how a business functions. Though this system is not a visible structure, it holds the business together. Understanding the essentials of how complexly this system works, helps a businessman find innovative ways to improve the way his business functions.
The core of every business is a collection of five interdependent processes which flow from one level to the next-
- Value creation
- Value Delivery
A venture without value creation is a hobby. It is a scam if it does not deliver what it has promised. If it does not sell the desired value, it creates a loss. A venture which is unable to attract attention is a flop and will inevitably close if it does not bring in enough money to continue operations.
A process that can be reliably repeated to attain a particular result is called business. Every business:
- Creates and delivers something of value
- That other people need or want
- At a price 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.
A business needs customers to buy the product and earn profit from the sale. This means a businessman has to create value for his product in the market, so people can buy it. HyperEffects, which is a premier user experience Web Designing company, helps start-ups and large-scale enterprises to produce and maintain their websites, hence creating value for their product. Contact us today for our free one-hour session especially designed to help small businesses increase sales of their products and services.
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