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 value isn’t as expected or in line with the independent party’s needs, then you’re running a scam. If the price of your value offer is too high, then you’re non-competitive. If you spend what you earn, then you’re a non-profit, and if you spend more money than you can bring in, (eventually) you’re a flop.
If this all sounds simple, it’s because it is… Business isn’t complicated.
Fundamental business success comes down to addressing and improving these five points and working out how to harmoniously integrate them all together and achieve an outcome or solve a problem. Keep it simple!
About the author
AIDAN KENEALY (BCom BSc MInstD)- Founder Hole In One Ventures
In 2013, Aidan founded EMGN.com, which would go on to become New Zealand’s fastest growing and largest entertainment website.
EMGN’s growth was unique. In its first year, EMGN was a global, multi-million dollar business that continued to grow both exponential and profitably without raising any external capital.
This is what makes Aidans’ experience very different from the ‘norm’ in the world of start up.
Follow the successful exit of EMGN.com in 2017, Aidan launched Hole In One Ventures to provide both capital, professional services and realistic advice to founders of high growth businesses looking to take their ventures to the world.