In order to start your own business or work in an established one, you must learn and understand the 7 principles of business. They are as follows: 1) the ability to start a business; 2) the ability to take action; 3) the ability to keep it simple; 4) the ability to be innovative; 5) the ability to lead yourself; 6) the ability to make decisions quickly; and 7) the ability to focus on results.
1) Business Strategy
Before jumping into starting a new business, you need to make sure that your strategy is sound. This may seem like common sense, but many entrepreneurs get so excited about an idea that they don’t spend enough time planning out exactly how they’re going to pull it off. Some things to consider before starting a new venture: Are you prepared for initial costs? What about marketing and distribution? How much time will you be able to dedicate at first and beyond? Do you have experience in your field or industry?
2) Business Operations
Business operations is a broad term that refers to all functions, processes and activities within an organization required to run it efficiently. The core components include leadership, product development, marketing, accounting and finance. The broader areas of operations also include human resources (HR), information technology (IT) and supply chain management. In smaller organizations with fewer employees, one person may have a wide range of responsibilities in multiple areas.
3) Business Development
The term business development generally refers to activities undertaken by a company to grow its revenues. This might include hiring additional staff, forming partnerships with other companies or even buying another company altogether. Business development is often confused with sales, but there is actually a key difference between these two concepts. Sales focuses on selling existing products and services, while business development concentrates on looking for new opportunities to help you grow your existing core product or service range.
4) Business Ethics
Business ethics is about making sure businesses are run in a way that is fair and transparent. This includes avoiding practices such as fraud, corruption and nepotism. In short, it’s a set of moral standards to which all organizations should adhere. If your company follows these basic principals then you can expect to avoid many business-related scandals and also boost employee loyalty.
5) Business Finances
While it’s true that there’s a lot to keep track of when you own your own business, it doesn’t have to be overwhelming. By employing these 7 fundamental principles, you can streamline your company’s finances and set yourself up for success in both your personal and professional life.
6) Business Leadership
A business is only as good as its leadership. Sure, you can have a dynamite product or service but if your management team is weak, it doesn’t matter how great your offering is, your company will flounder. Here are some traits every great leader should exhibit
7) Business Technology
Technology is key to success. There’s no getting around it. A solid technology platform has enabled thousands of businesses to flourish and catapult their founders into millionaire-dom. But, there’s a difference between having access to technology, and knowing how to harness it for maximum impact—and that’s where most entrepreneurs fall short (and make costly mistakes). So, what do you need to know? What tech can help you be more productive? How can you take advantage of software solutions?