You don’t need an expensive MBA to achieve business success. Understand this 5-Part Basic Business Framework to take stock of venture.
Over 60% of small businesses in Australia fail within the first three years, and the rate of this failure has risen by nearly 13%.
The good news is, understanding business is not complicated. All you ever need to take stock of your venture and succeed as an entrepreneur is this 5-Part Success Framework according to Josh Kaufman, author of the Personal MBA.
“At the heart of any venture, big or small”, says Kaufman, “are these 5 basic business components.” Understanding how they work will enable entrepreneurs to succeed in business. Let’s explore and analyse each one to help boost your startup into a thriving venture.
A business that does not create value for others is not a business, but a hobby. The first thing to understand when starting a business is – what will drive people to buy in to your product or service?
People will pay a premium for a service that solves their problems and makes their lives easy. This is why companies like Amazon exist. People will also pay a premium for products that will elevate their status, like Apple’s products, for example.
So, think about how you can have a product or service that’s convenient and makes people feel special. But, even if you get this part right, there’s still no guarantee that people will buy it. Which leads us to —
A business that doesn’t “market” is a ghost. You may have the best product or service ever created but if no one knows about it — it does not exist. So, what sort of marketing are you doing to draw and hold customer attention to your remarkable product? Any business that can do this can move to the next stage –
Sales is the lifeblood of business. And a business that does not sell is not a business, but a non-profit. As an entrepreneur, you must know when your offer exceeds or falls short of the customer’s perception of value. Are you too pricey and not worth the money? Or are you cheap and too good to be true? Either way, you don’t make a sale.
Have conversations with your customers, get their insight, build a relationship and earn their trust because the more trust a business has, the more sales it makes. Learn how to build customer trust.
A business that does not deliver what it promises is a scam. Customer expectation is already high at the beginning of the sales process. And as soon as the purchase is made, the performance of the delivery must surpass expectations if you want them to buy from you again and recommend your business to their friends.
So how are you exceeding your customer’s expectations? What systems are in place to ensure delivery of high-quality products in a fast and reliable manner?
A business that does not bring in enough money to keep operating will die eventually. All businesses regardless of size, need to reduce spending in one of the four parts mentioned previously or produce something of greater value to succeed financially.
Deep dive into these fundamental business concepts. Learn how to hone your sales strategy, fine-tune your value delivery and drive financial growth at the SME Success Summit 2020.
And get the full summit experience virtually! Engage with speakers and delegates with the option to enjoy the summit online via LIVE streaming.