The Real Definition Of Business
Thursday, March 29th, 2007It’s been over a year since I left full time work and I’ve had the privilege of seeing business from many perspectives. I am beginning to form the conclusion that business is all about turning unpredictable circumstances in to predictable ones.
Let’s say that you sell puppies in a shopping center. You know that you will average x number of people walking in the store each day, of which you can predict y% will purchase. Though you will experience cycles, you know that some breeds will outsell others. You also have a known margin on your puppies, and you also have
predictable monthly revenue, costs, and hence profits.
The biggest hurdle facing anyone starting a business is to discover these “knowns”. You don’t know what you haven’t seen, and you will never see what you never try. And don’t assume! Measure! Test! You know what they say right.. “when you assume you make an ass out of u and me”
The biggest personal challenge is to get your feet wet. Once you’re in though, don’t hesitate or you will eventually freeze to death. Make sure that before you hop in, you set a soft budget of money and time. Spend as little money and time as possible but kick as hard as possible in every direction you can. Build channels and test.
My first mistake was to not budget my time. My second mistake was to not budget any money. You need money, and you need time. Without money, it takes too much time. Without time, you won’t make any money! ;)
My definition of business: predictable channels from your customers to a sale.
Good luck!
