Building a business is like a LEGO Castle. Take one brick off and everything falls apart.
Recently my father asked me to read a book which was his. This book is named “the personal MBA” by Josh Kaufman. This book is all about the management of businesses and MBA in the form of a book.
I started reading it about 3-4 days ago and it has been an adventurous ride.
The books were detailed yet simple and kept entertaining facts that would have been boring otherwise.
So what did I learn from the book? This essay will show you exactly that.
The first topic I learned was “What is a business?”. The whole book was about business so it would be pointless to read the book without knowing its fundamental meaning. So here is:
What is a business?
A business is a process that can be repeated which:
- Creates something of value and delivers it
- Which people would buy
- Sold at a price the customers are willing to pay
- Making sure that all the customer’s needs at satisfied
- That the business makes enough money to be able to cover its expenses and make a profit.
All of this is like a LEGO Castle. Take one off and the whole thing falls apart. You could be a multi-million company or popular brand but without one of these, they aren’t a business. But there is something even more important than all these. Having the upper hand is none other than Value.
This is the Iron law of the market. Ever noticed how value is determined by people? Like who decided that paper was worth more than gold? In the same way, value is something that people want or are willing to pay for.
More specifically, value is something that solves a problem or heals a pain for people. For example, headphones are solving a problem. It solves a problem for people in the library, who want to listen to music silently. Or it could help people who just want to listen privately.
Iron Law Of Market: If no one is willing to pay for your product then that means your product has no value and your business is doomed.
Every business.
At the core every business has:
- Value Creation: Create something of value which is so good that people are willing to pay for it.
- Marketing: Bring attention to your product.
- Sales: Turn prospective customers into paying customers.
- Value Delivery: Deliver your product to your customer and make sure they are satisfied.
- Finance: Make sure your company gets enough money for your expenses and can make a profit.
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