If you find yourself on this page, you must have thought about starting a business or just maybe want to know what a business actually is. Here I will try an explain what a Business is as best as I can but, it will be mixed with my view of a business/company.
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So let’s dive in.
Investopedia Definition of a Business : “A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. Businesses can be for-profit entities or non-profit organizations that operate to fulfill a charitable mission or further a social cause. “
I do agree with this definition but allow m to ad for better context. A business’ goal is to make a profit. (Not rocket science) The profit of a company is the sign of health for the underlying business. Businesses that do produce a profit has the ability to branch out their product range, increase their clients by spending more on advertising or invest in tangible assets for the business.
To produce a profit is only the sign of a healthy business
To run a business doesn’t simply mean you have a product to sell, oh no. A Business is much more complex, you the owner needs to understand key principles of a business. For example:
And these are just a few tips. I always get a chuckle if someone tells me they have an amazing product to sell and they are thinking of starting a business. And Yes, for many they think just by creating and selling said product they are a ‘ Business’ but i like what Mark Cuban always says on Shark Tank (entrepreneurial show).
He would always correct an Entrepreneur who does all the work and sell their a tremendous amount of product without a System.
That is the key.
A Business is a System. Without a System, you are simple someone selling an amazing product.
If you think you are a business owner, simply ask you the following question:
If you had to leave unabroutbly to visit your family somewhere abroad, will your Business/Company carry on making an income?
If the answer is Yes – Well done! You have a system in place.
If your answer is No – You are an Employe of your own Business.
Want to learn how to build a System for your Business?