Before you embark on the journey of owning a business it is paramount that you understand the different components that make up a business. This makes it easier for you to design your business besides being able to differentiate between good and bad ones. The following factors are to be considered when you are planning of setting up a business:
First and foremost you need to have a mission, a business needs both a spiritual and a business mission to be successful especially at the beginning. If the mission is clear and strong the business will whether the challenges every business goes through during the first 5-10 years. When the business begins to grow and gets bigger than when it started and it forgets the mission why it was created, this is the point at which the business begins dying slowly. The mission of a business should fill a want that a customer needs. If it does, then it is possible to make the money. A spiritual mission should come first before a business mission. Spiritual mission could be like helping conserve the environment while the business mission is to making a profit out of that.
Second you need a team. Teamwork is crucial to building a powerful and successful business. This is one of the keys to financial success. Investors look at the team behind the business. If the team is weak or lacks experience and any proven track record they won’t invest. Investors want to see experience, passion and commitment in the team/management. Money follows good management in the world of business capital. For you to succeed as a business you need to have the proper expertise in the key areas.
Third you need leadership. Your team needs leadership and this comes from a true leader, someone who is visionary on the corporate mission. A true leader knows when to listen to others, take decisive actions while maintaining focus on the mission. Without a leadership there is no mission and team.
The top 3 components are the basic fundamental building blocks of the business. We have other blocks that you need to build a strong business.
Cash flow Management – Cash flow management starts on the very first day you begin your business. Many people lose sight of their cash flow management when the business becomes successful. This is one of the causes of business failures. Proper cash management is crucial to the success of the business.
Communication – Being able to communicate effectively with as many people as possible is a very important life skill. Communication is important skill in team building. Many business owners have low sales due to poor communication with staff and investors. If a business set up a strong and convincing marketing strategy, the sales comes in easily.
Business System Management – A business is a complex system of inter-operating systems. Each blocks being discussed here is a separate system that is linked to the other systems. You can’t separate these systems because they depend on each other. Each specific individuals must be accountable for each of the systems for the success of the business
Legal Management – Legal issues can easily come up in almost every facet of business, obtaining a competent legal counsel is very important when you are beginning your business and as part of your advisory team.
Product – This is what represents the company hence it is very important. Your product needs to solve a specific need of an individual or a business.
In conclusion all the business building blocks must be strong and interdependent to grow your business successful.