There are tons of resources on the market on how to launch a business. Some are completely old school...develop an idea, get a yellow page ad, rent an office, buy some stuff, and sell it.
And I’ve done it this way, and it failed miserably. I’m not talking about a little, but a lot of fail. The business didn’t necessarily go under, but it sucked a lot of time, cash, and resources to get off the ground with an extremely long return on investment. I’ve launched a construction business, franchise business, material sales business, consulting businesses, and service businesses. Some were successful, and some were not. I was truly frustrated. I felt like if I threw money at a problem long enough and hard enough, magic would happen.
Isn’t this how a lot of businesses are launched these days?
Throwing money at a business is not the way to solve fundamental problems. A nice building, a ton of advertising, hiring a lot of people, and spending money on consultants will not replace the fundamentals necessary in starting a business.
What are fundamentally the most important things in business? I think there are really just two fundamentals:
1) Value that exceeds customer expectations
2) A viable and sustainable business model
That’s it. Focus on creating a crazy amount of value for your client and have a business model that allows you to do so sustainably. Everything else stems from these two concepts. If you provide extreme value to your customer or client, you will easily be able to market and sell. Once you have marketing and sales, then you have operations and finance. And, if you truly understand your business model, you will make a profit along the way.
Isn’t that a great plan? Focus on the value, build a business model, and make money while helping people.
I see businesses without a viable business model. I see others that have a great idea, but are just in it for the money and don’t want to provide value to the customer.
I’ve seen businesses that have great idea, but no idea how to generate revenue, and therefore go around with their hand held out asking for money.
I just don’t get it! There is a gap.
I’ve worked with a lot of clients who wanted to sink a tremendous amount of money into businesses, and, after going through this process, reduced the amount of money they intended to put into the business by one half or two thirds. I’ve also helped businesses start for little to no cash, and I’ve helped others take their businesses to the next level by focusing on the value they create for customers and a solid business model. In the end, the two things that a business has to focus on are the value provided to a client or customer and their business model.
What do you think?