There are five things common to all successful businesses. Let’s take it right back to the basics and assess what are the five things common to all companies that succeed in business.
What is common to all successful businesses? If your mind has wondered to exceptional founders, world-class teams, disruptive products etc, you are on the wrong track. This is more of a fundamental question.
Business isn’t rocket science, nor should we pretend that it’s comparable. At its core ‘business’ is a very simple concept. Empower independent commercial entities to allocate and self-govern capital to solve problems in the real world.
We can then take this a step further and add a little detail to this definition.
A successful business is something that (1) creates value (via a product or services) for an independent party(ies) and (2) delivers this value (3) in a form that satisfies the independent parties need (4) at a price the party is prepared to pay (5) that allows the business to bring in more money than it costs to build and deliver the value.
Take any one of these five factors away and you don’t have a business.
If you’re not creating value for an independent party, then you’ve got a hobby. If you don’t deliver value, then you’re conducting R&D. If the delivery of the…
