subject: Business Principles [print this page] Business Principles Business Principles
Principles of Business focus on the theoretical and practical aspects of business activities. It provides a framework to assist in more informed decision-making by individuals in their role of producers or consumers. Business exists because it serves a purpose. That seems a little obvious doesn't it? The purpose is to serve customers, because your customers are the source of your revenue. Every business operates in a competitive landscape. All customers and organizations have a limited budget and must carefully select the goods and services that best meet their needs. Products and services may be chosen by style, quality, reliability or relationship.
Now that you know what your motive is, it is time to understand why this motive is important to you. You might want to build a business success to support the kind of lifestyle you want to lead or simply to pay your bills and take a vacation once a year. It is essential that you know why you want to do this for yourself and why your want becoming a successful entrepreneur.
With a very clear understanding of "what you do", it should be very easy to name your customers. Your current customers are your shareholders, because they have already invested in your product or services. It is very important to understand how your current customers perceive your value. Once you truly understand your current customers and the reasons that they invested in your value, then you should be able to identify your competitive advantage. Whether it is your family's money, or customers, you just don't want to lose other people's money. And if you do, figure out a way to repay them because if you take care of your customers they will always take care of you.
Understanding your current customers and product differentiation is important to maintain the current business. However, the environment and culture in which your current business exists is subject to change. It is necessary to monitor changes in the environment, competition and customer demands.
Business organization is based on structure. This includes the structure of the resources, manpower and materials. A structured organization relies on processes for consistent and organized performance, expediting response and improving efficiency.
Other rule for business success, associate you with like-minded people. By acquainting yourself with people whose lifestyle, thoughts, revenue and ambitions are similar to yours, you would be actually seeing yourself moving up the ladder for becoming a successful entrepreneur.
