Let me ask you a question…
What does it take to have business success?
If it was as easy as every book, blog and workshop makes it sound, then why do so many businesses struggle and fail?
What would it take for YOU to be successful starting your own business?
That’s the real question, isn’t it?
The sad part is that too often business owners are starting their own businesses without asking this basic question.
A Structure is only as Strong as it’s Foundation
The problem with most businesses is that in the excitement and enthusiasm to get started, the owners do not think it through.
In the rush to get started, they follow the Ready, Fire, Aim approach to building a business. Hoping to go from zero to hero in no time flat.
Don’t get me wrong. enthusiasm, excitement, and passion is great.
But emotion unbridled without a plan is dangerous.
Fortunately, there is a simple solution.
Have you ever walked by a construction site?
One of those open lots enclosed by plywood-covered sidewalks? Day after day, it’s as if nothing is going on, just an open lot. Then, like a weed, the building shoots up.
In construction, the builders know how important a strong foundation is. They have to dig down deep enough to hit bedrock. Or, drive concrete pilings down to strengthen the site. They know that the necessity of a strong foundation.
And the bigger the building, the stronger the foundation needs to be.
The same is true for your business.
Starting before you have set your foundation is a recipe for disaster. Your chances for business success plummets. You might not fail immediately. Maybe not even for a while…
But it will. And sometimes, spectacularly crashing down around you…
The Foundation of Every Successful Business
In The Personal MBA, by Josh Kaufman, the author states that there are 5 parts to every successful business.
Every successful business (1) creates or provides something of value that (2) other people want or need (3) at a price they’re willing to pay, in a way that (4) satisfies the purchaser’s needs and expectations and (5) provides the business sufficient revenue to make it worthwhile for the owners to continue operation.
Business owners that succeed follow this simple formula. Those that don’t, fail. It’s that simple.
- Value Creation – offer something of value
- Marketing – that people want
- Sales – at a price they’re willing to pay
- Value Delivery – which satisfies their needs and expectations
- Finance – and makes enough money to make it worthwhile
Finding the Sweet Spot of Business Success
When all five of these pieces are in place, your chances of success are infinitely better than a business that is missing even one piece.
Beginner business owners focus on the value that they are creating and delivering. They hope the other pieces will fall into place.
It’s not their fault. This is all they were taught by the schools that trained them.
Whether you are a massage therapist, chiropractor, acupuncturist, or even a medical doctor or dentist, it’s all the same.
You learned the skills of your trade. What to do and how to do it. But you were not taught how to attract customers, sell your services, and to keep your finances in order.
All 5 parts are needed to run a successful business. Starting your own business missing 3 out of 5 pieces is going to be a problem.
You’re left on your own without even a life vest to sink or swim in shark-infested waters.
There’s an often-quoted statistic that 50% of businesses fail within the first 5 years. This is open to some interpretation depending on how you want to define “failure.’ But the odds are still not pretty.
Your chances are better if you go to Las Vegas playing craps.
Well what then…
The key to starting your own business the smart way is to set your foundation as soon as possible:
- how exactly are you creating value for your customers?
- how are you creating a connection with potential and present customers?
- how are you allowing customers to purchase your products and services?
- how are you delivering value to your customers so they want to come back?
- how does your revenue exceed your expenses, is it worth it?
Next, let’s talk about how you are creating value…
In other words, does anybody want to buy what you are selling?