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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.

— Josh Kaufman, The Personal MBA