Roughly defined, a business is a repeatable process that:
- Creates and delivers something of value,
- that other people want or need,
- at a price they’re willing to pay,
- in a way that satisfies the customer’s needs and expectations,
- so that the business brings in sufficient profit to make it worthwhile for the owners to continue operation.
It doesn’t matter if you’re running a solo venture or a billion-dollar brand. Take any one of these five factors away, and you don’t have a business — you have something else.
- A venture that doesn’t create value for others is a hobby.
- A venture that doesn’t attract attention is a flop.
- A venture that doesn’t sell the value it creates is a non-profit.
- A venture that doesn’t deliver what it promises is a scam.
- A venture that doesn’t bring in enough money to keep operating will inevitably close.