Wise Wednesdays

What is the Purpose of a Business?

Whenever I start a workshop I ask the group this question: What is the purpose of a business?

Most people reply, “to be your own boss … for creative self-expression … to create fulfilling work.” All are incorrect. These may be your motives however the purpose of a business is to find and keep customers at a profit. Period.

I had two graphic designers as clients. Both had similar skills and decent portfolios. George (not his real name) focused on doing creative fulfilling work. He failed. Jonathan (not his real name) focused on activities that helped him get clients: Selling and networking. He dreaded doing these activities. Eventually he got better at it. Jonathan ended up hiring people and his business is thriving today.

Let’s be perfectly clear: Doing creative fulfilling work is important. However, not all your needs can be met at work. Most entrepreneurs realize early on if they are to be successful they will have to do things they don’t like to do. Selling. Networking. Watching their dollars. Be prepared to give something up. The Dalai Lama has a great saying, “judge your success by what you had to give up to achieve it” (and you better be prepared to give up more than just that Mocha Latte you have in the mornings!)

What are you willing to give up to be a successful entrepreneur?

Last week’s Wise Trivia: What type of businesses are successful 90% of the time? Franchises – 80 to 90% of franchises that start are still in business 5 years down the road.

You may say that franchises are really not run by entrepreneurs (because they are given a turnkey operation). However, franchises offer a valuable lesson. Franchises have a process they follow on meeting customer expectations. Each customer has a consistent experience. You walk into a Second Cup and you know you can find that Mocha Latte you so relish.

As an entrepreneur, you are creating a system, a process that the customer experiences. Can you describe the process, in detail, from the time a potential client comes in contact with you to the time they have bought your goods or services?

This week’s Wise Trivia: Generally, how long does it take before your business is a success and how much resources will you need? (Find out next week).

Cheers,

Dominik