The Real Definition Of Business
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It’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!
March 29th, 2007 at 10:05 pm
True Post…. I mostly enjoyed the puppy photos though. This last one here is just a cutey.
April 24th, 2007 at 2:02 am
I was looking for a good definition of business for a class I am taking, and I found you. I love your doggies! My favorite is the Snoopy puppy.
September 30th, 2008 at 2:58 pm
well its not the actual definition of business, as business really means in its truest sense ” an exchange of values” thus when two people interact and engage with each other in order to secure some value which they both wish to exchange for the desired commodity.
but i liked the way you have said that a business only becomes secured when one really knows the” predictable channels from ones customer to sale”.
and also the part on managing time and money, guess have made a mistake in managing both efficiently, but then all business is undertaken under the assumption that it’ll pull through.
thank you,
good luck!