The Four Basics Every Business Needs To Be A Success

If the business is small they can be performed one person or two, but each needs to be done and done well.

The first is vision. To succeed the business has to have a vision of where it is going, how it’s going to get there and a timeline to mark the progress. This is the what, how, for who, where, and why. Without a vision the business may survive but it will not prosper, and in the long run it will not succeed.

The second is operations. The business has to produce the best possible goods or services called for by the vision. If what the business offers to the market is of poor or inconsistent quality, delivered late, or at too high a cost the business will not succeed. It may not even get off the ground.

The third is revenue. Revenue is the result of selling something to a customer, a bonafide arms-length transaction. Without sales there is no business. Sometimes people fool themselves into thinking that the development work being done under a grant or through the use of investors’ funds is a business. It isn’t. It’s only a business when somebody will exchange their money for the goods or services produced by the business.

The fourth is control of the money. Most business people leave this for last and often that’s too late. Whether it’s the owner’s personal money, capital raised from others, or advances from credit cards or bank loans, the first time money is put at the business’ disposal, that’s when money controls have to be in place. The control of money is especially important when revenues (sales) exceed the cost of operations, when there is more money at the disposal of the business. This is when many poor decisions are made.

When a person starts a business they usually have the ability to handle well one or two of these basic functions. Sometimes they may even be able to take care of a third - to some degree. Invariably there is one or maybe two that the person can not do at all. Human nature being what it is we all tend to spend our time doing what we like - which is usually something we can do well. Again human nature being what it is we tend to ignore what we don’t like or can’t do well.

And that’s a problem in business. What you ignore is what will become a bigger and bigger problem. A big problem left unattended or poorly attended can become fatal.

What’s interesting is that most business owners know what they like to do and do well and what they don’t like to do and do poorly. It’s also interesting that business owners know when what they do poorly (one of the four above) needs attention. But they still put off taking any action.

Perhaps it’s because they don’t know who to go to for help, or how to evaluate the help (the specifics and the person supplying it) and are afraid to admit it.

I recently heard another reason; asking for help goes counter to our American “we can do anything,” conquer the wild-west attitude. The more I thought about this, the more I found myself agreeing with it. We see it in the movies, read about it in the history books, probably heard about it from out parents, and witnessed it in action with friends and associates.

Assuming (a dangerous thing, maybe more so here) it’s right, how can the business owner keep his macho man in check?

Start by getting an advisory group together. Make it informal, perhaps one-on-one sessions with the individuals before you bring the group together. Be sure they are people whose words you value and then be honest with them. Tell them you think you need some help, that you think there four elements necessary to make a business successful and that you have two covered well, one just a little, but you are out of your element on the fourth and let the questions begin.

One last thing - on the advisory group - make sure there are some women in place.

Art Consoli's unique background and skills allow him to speak and write about how someone with limited experience can do a self-evaluation which will let him decide which business opportunity is best, how to evaluate opportunities and gain control over the one which offers the greatest potential and then manage that business to success. Readers of his book call and write to tell him how much his book has helped their lives and improved their business. The author can be reached at www.businessstrategyartconsoli.com.