LET’S START FROM THE BASICS – WHAT IS BUSINESS ALL ABOUT?
BUSINESS IS A SET OF PROCESSES DESIGNED TO MEET CUSTOMER DESIRES AND GET PROFIT
For a business to succeed, the processes of must create a closed circle of three essential elements – BUY, SELL, and CUSTOMER DESIRE. For this, there is a prerequisite – satisfied customers and profits (buying – selling – satisfying customers and getting profit – buying and so on). Do you agree that if you do not make a profit, you cannot reinvest it and produce more goods or services? Without a profit, you will fail. And if customers are not satisfied, it is just a matter of time before they stop using your services or goods.
These 3 elements are involved, regardless of whether your business is goods or services. If you provide services, you buy workforce or other necessary resources for service realization.
3 MAIN BUSINESS ELEMENTS
So, we can conclude that the world market is simply driven by desires, expressed between buyer and seller. Desire is born in the world economy when one person sees something the other one has and realizes he doesn’t have it but wants to have it. This creates desires, also called market niches.
Niches are filled by sellers, people that find out about the desire and offer to sate it. People that require satisfaction from this desire become buyers.
For example, in Russia, bananas don’t grow, yet the people desire them. It is the job of businesses to bring bananas from South Africa, where bananas are plentiful, to satisfy the desire for bananas in Russia. Or to provide business services, professionals are hired. So, it means buying specialists’ time and selling it to customers.
So 3 main elements BUY, SELL and DESIRE (known as market demand) are the basis of the entire business, whether it is old or new, production or services. It is just a simpler way of looking into the business and the world. Write down the main stages from buying products/services to selling. These stages can be complemented by intermediate steps during the work.
Answer the question in what way and by what means will be satisfied desire. I strongly suggest always having your plan clearly written on the board.