Business begins with idea. From the demanded, strong idea. From idea which is necessary to people, from idea which will allow business to take place … business idea answers a question: «Where money lies?» Where to take such idea? How it to strengthen? Apply ideas of this article to the business – they will bring to you money.
Weakness of idea is felt and in low profitability of products, and in small profit of unfortunate businessmen, and in ridiculous salaries for unfortunate employees.
You saw бизнесы which are ugly organized, бизнесы, in which brothel and chaos, бизнесы which monstrously operate and which thus – are successful?! They have money, there are clients, there are employees who are ready to work because well pay … Certainly, a year or two from now processes of structurization, optimization, a regulation will go to these бизнесах, they will be engaged in construction of correct processes that will allow them to save monthly considerable volume of resources and to develop further. I don't want to tell that in all бизнесах with strong idea the brothel, moreover, is weight of examples in the literature when even the strong idea hasn't been embodied, and business collapsed owing to the wrong organization of business processes. Nevertheless, let's begin from the
Part 1. Base model of business
I will try to describe base model of business on which basis we will do the analysis of business and to develop ways of increase of its profitableness and efficiency.
Business models exists much as however, and definitions of concepts "business", "management", "marketing" etc. Our problem not to find only correct definition, and short to describe tools convenient for the businessman which the objective will help to achieve – «to earn first million in the shortest terms», therefore henceforth I will prefer simple, and to sometimes intentionally simplified schemes (thus they should be concrete and productive).
So, our first model, simple and convenient, looks so:
Idea
Processes
The personnel
This model is universal. It includes the basic parts of business and shows an order which it is necessary to adhere by working out of business and the decision of business problems.
To begin the business analysis it is necessary always from section Idea. She is the tsarina, the main dominant of business by right occupying top of a business structure.
If there is no idea there is no business.
If idea weak you automatically appear in a difficult situation: any success will be given with huge work. Moreover, no strong decisions in sections Processes and the Personnel will lead to the treasured purpose: to fast one million. For example, you have perfectly well organized process of manufacture of house slippers, have bought the expensive equipment, have picked up a tremendous command, have trained the personnel, but the idea hasn't gone, and consequently all efforts were vain. Money was gone, and the command has run up, (if certainly, you haven't found in time stronger and demanded business idea and haven't directed the resources on its embodiment).
If the idea is strong, but isn't new, you are doomed to the rigid competitive struggle sometimes exhausting and senseless: many large companies, leaders of the market have the lowest profitability.
After careful study of business idea it is possible to be engaged in an estimation of business processes.
If it is possible to name business idea business heart business processes are its skeleton. If business processes you scoop water a sieve aren't debugged.
From 20 to 70 % of your money it is spent irrationally, your people spend over 40 % of time for nothing instead of earning more money.
When you have consult , have described and optimized the basic business processes, time has come to be engaged in the personnel.
Your personnel are muscles of business. If you don't pay attention to the personnel you are doomed. Today in the majority of spheres of business the competition so is sharp that any improvement can be copied instantly. And then the personnel becomes the basic trump. If you have correctly put work with the personnel your people can't be enticed, having promised to add one thousand to the salary: them keep in your organization not only material stimulus. If you had time to organize system of corporate training your people will be is better and competitors will fast cope with similar problems, than. So, your chance in struggle for the Client will be above, and you will reach finish in race for one million faster.
Part 2. Business begins with Idea
So, we have described base model of business with which help we will improve organization work on purpose faster to earn one million.
Idea
Processes
The personnel
Let's be engaged in the business idea analysis. I will not begin our conversation with global phrases, such as:
Formulate business idea of your organization.
Name your key competitive advantage.
Than your company differs from other similar companies?
Too difficult here so in a forehead to answer these questions. Many, beginning business, don't reflect on it, and simply do serious work, because it it is interesting or favourable. In process of growth of the organization the situation in the market changes, and the company starts to understand that it manages to do better others what exactly is necessary to clients and so the company real face is gradually formed.
Part 3. Some scenarios of development of business idea
So, for the analysis of quality of business idea allocate the basic direction of your business. For some readers will make it very simply: «we are engaged in sale and installation of kitchens from the partner-manufacturer» or «wholesale deliveries of alcoholic production / automobile oils / …».
For someone it is more difficult, especially if in the company some directions of business are simultaneously conducted. There are they often spontaneously, and there is it approximately so: have started to sell computers, and clients ask to adjust them and to support, - there is a branch of service service. Or: the sales department works with corporate clients, but quite often private traders come into a hall also. It is a pity to refuse ready cash, but small clients take away fairly time from what corporate Customers suffer. So all the same to refuse money or, maybe, to open a retail direction?
Sometimes the new direction rescues all organization literally, deduces it on the new markets, on new level of financial achievements and organizational building, and the old business idea with which once all began, by itself gradually fades.
Sometimes the initiative employee to whom it becomes fast closely within the limits of problems of the organization comes to any department and the management rises before a choice: or to lose this perspective professional, or to open under it a new direction. So occurs to advertizing departments which start to serve not only the native organization, but also external clients.
In process of growth to some organizations all becomes more difficult for understanding that they do and what for work. With increase in number of the organization the business idea is washed away, ever less people know it and can accurately formulate, therefore for its advancement special actions internal and external PR are already necessary. Try such experiment: ask your employees to answer such question in writing: «our organization What for works?», also count up % of the coincided answers. The good situation begins only with 70 %. If your indicator is worse, there can be problems with controllability of the organization, the probability текучки shots, in a word, raises expect all bouquet of problems with the personnel. Here so in our model the layer Idea is connected with a layer the Personnel.
When the business idea loses focus at once not clear there is also a development strategy. Before the head there are such questions:
To separate each business direction or to develop under one brand, forming a management company?
How to divide administrative expenses: on all fifty-fifty or to proportionally turn?
To conduct the general accounts department or in each direction separately?
What powers to transfer to heads of divisions and what to set aside on the discretion to the Center?
Unambiguous answers on these questions aren't present, all depends on thousand nuances. And each decision will cause certain consequences which will be reflected in all company. The weighed decisions can be accepted, only understanding the basic idea and strategy of development of the organization. And, considering that development seldom occurs exactly and is balanced. Any departments and business directions go forward, others turn to braking transports.
Sometimes the Head comes to a conclusion that it is more favourable to it to transfer certain business functions to outsourcing, than to put up organization money in development and training of internal employees. This procedure can be very painful, but it promotes business focusing. To make the correct decision, it is possible to use an outsourcing matrix.
Let's try draw a certain ideal picture of development of new business. The initial business idea urged to solve very much a specific target, for example, to sell computers. Then there are new problems, ideas, and here in the organization some departments, divisions already work. Gradually the overall picture starts to develop of separate problems, and the organization leaves on a new level of development on which unites all departments in the uniform concept. For an example again we take the same firm selling computers. Here is how there can be a process of its development:
Sale of computers – service service – department 1С – a lining of networks – the Internet the provider – the system integrator: office on a turn-key basis (new level of business).
This process very interesting and grasping. The main thing in process of development not to run away, both over the finance, and over firm as a whole. Not seldom events develop in the sad image: the service center doesn't cope with support of computers up to the mark and it negatively affects successes of a sales department, image of firm as a whole worsens, and company turns fall. To taxi in this situation, it is necessary to build in a new fashion a control system, to enter quality assurance processes, work standards, regular management. As a matter of fact, business idea change conducts behind itself reorganization of business processes and work with the personnel.
I saw also such variant of a birth of business idea: the Main business ideologist, lying on a sofa, on days off during half a year – slowly, in details describes Vision of the future company:
In what key difference of the given organization?
What for it works?
How the basic business processes are formed?
How work with clients should be under construction?
What principles the command should divide?
What employees should be employed?
As well as to that to learn?
Certainly, these ideas arise not for no reason, and for example, at a conclusion of internal technical service in separate business. Then there is a real work on organization building: regularly, time in 3-6 months we open Vision, we compare an ideal picture that is, we put the new purposes of development and so gradually, it is forward, small iterations we raise the organization. In something the picture changes also: Life introduces corrective amendments.
It not a book invention, and a real example though such model of development of business is faster an exception to the rules for the Russian business. Is more often it occurs, when our ideologist builds not the first business, and already has behind shoulders experience of construction of the successful organization. So happens and to children: with the first child all of us do наощупь, we do not know, whose councils to listen, we worry and fuss much. And with the second child simply we enjoy process of its growth.
This thought once again convinces of approachibility of our purpose: using the fulfilled business schemes, faster to earn one million.
So, we have analysed some scenarios on which the organization as the business idea is formed is born and develops, and now we will consider questions with which help it is possible to strengthen business idea so that it could bring more money in unit of time with the minimum investments.
Part 4. Questions for business idea study
The market.
You can earn more money if your idea is fresh, and is addressed the young growing market. On the one hand, for each idea there is a time: the idea is in the air also the one who the first can realize it literally, has won. Not without reason in different points of globe independently from each other scientists made large discoveries. So was, for example, from radio. On the other hand, the market should be ready to your idea: the idea should be ahead literally on one step. We remember, how trust cellular communication and as us frightened of the harmful radiation attacking your brain from a tube of a mobile phone long gained. Only today for some reason all have forgotten about it, and we hardly represent ourselves life without this small pocket friend. Nevertheless, promotion of the "cold" market will demand from you remarkable abilities, purposefulness, serious financial injections throughout long time without the guaranteed return. For example, you can shake the market, but cream for you will be collected by more bright competitor who won't shun plagiarism and can faster introduce the decisions gained by you by trial and error
So, your business idea concerns the new market? If yes, that is risk that it doesn't bring money, simply won't go: on the average from ten ideas 5 неуспешны, 3-4 give low indicators of success and only 1-2 become valid can "gold mine". Be thus ready to that your superidea will be quickly stolen by competitors and will receive the big return at the expense of more effective organization of business or you take off from business because of maloperation with the finance, with clients or with own employees. Probably, imperfection of business processes won't allow to raise wholly money from "field" of your idea. Thus don't forget that business growth at a weak control system more than on 20 % a year is risky.
Your idea concerns the mature market?
Then try to overcome to begin with an input threshold on the market. Probably, the niche is already occupied, therefore it will be extremely difficult to prove. If it was possible, you should face at first an intense competition among tens isolated firms, and you, most likely, take off from the market (it is destiny of 70 % of the companies, i.e. with probability of 70 % you get to numbers of losers). If all the same you are fixed and will enter into the five of leaders character of a competition will be changed with sharp on the suffocating.
All will be daily, hourly to smother each other, reducing the prices in struggle for each client, for each slice of the market, and probability of that to you will get though any profit, - is illusive. You should be ready to fluctuations of the market and the long periods of recession, to become truly the virtuoso, not to surrender, and to stand.
Really all so is bad? Certainly, no.
I will repeat that business is the shortest way to first million, but nobody promised that the way will be a lung. But you take pleasure in struggle process, business will grasp you and will for ever change life. In a word, won't regret …
If you could formulate correctly business idea, means, could close a huge layer of the problems connected with marketing and the personnel. Believe – is for what to struggle.
What potential of idea?
Count up, how many there is your idea, i.e. what volume of financial assets it to you will allow to earn. For this purpose it is necessary to define market volume. To calculate it it is simple enough.
Write out the basic categories of clients. By results of the previous periods define average sales volume on each category. Estimate, how many clients of each category are in the given market. Перемножьте sales volumes on each category and then combine they be you receive the maximum volume of the market. If you work in the market of Russia you should consider idea potential on each region since figures can differ considerably.
To define your share it is possible: count on base, how many clients on each category work with you. Inspires on feats?
Your idea is how much financially steady? Whether she allows you to forge money?
Your turn depends on a regularity and frequency of use of your product: for example, bread buy more often, than the vacuum cleaner. Normal business begins with a question: why the Client will come to me again and again? If the vacuum cleaner is necessary time in five years I will sell to the Client sacks for garbage of times in a quarter, and still the TV, phone, the washing machine, a mixer and other, other, other. It is important to put possibility of regular meetings with the Client. For example, it is possible to sell single visiting of a bath, and it is possible a club card on a weekly session at 18.00 on Wednesdays. By the way, really to receive a maximum of advantage from банных procedures, it is necessary to take a steam bath weekly. Here on such clients who divide this thought, and your business will be based.
How much your idea financially attractively for the client, i.e. how many it will allow it to save?
Make the analysis of the prices for similar products. The strong course - to leave from a price competition and to offer powerful arguments in favor of your business idea not in a cut of a price policy. It will allow you to come nearer at once considerably to the purpose «Fast one million» at the expense of a high margin, to come off competitors and to be beaten out in the five of leaders. Moreover, you will have a place for maneuver in case of situation deterioration in the market. So, whether there is at your business a difference which will allow you to lower the cost price?
Whether there is at your business a difference which will allow the client to choose you?
On the one hand banal, and with another – a key question by which we can't pass. Answer this question constantly by a principle of the Olympic sportsman: and still? Still than? Your answers should become stronger, stronger, stronger … don't stop, it is your new mantra.
You could formulate distinctly your difference? If isn't present, good-bye: to you yet about what to talk neither to Clients, nor with employees. What use from idea which sits only in your head? You stand at the beginning of huge work on cultivation of this idea in a head of each your potential and former Client and each employee.
Your idea is based on a concrete product, technology? You can be connected it.
If you are focused on idea of satisfaction of requirements of the Client will always search for the best way most full to satisfy requirements of your Customers. You will understand, what problems are at your Clients, and to aspire to find successful decisions; so you have an opportunity to be ahead of all in the market.
Model of your business B2B (business for business, work with corporate Customers) or B2C (business for private persons, retail trade)?
Be defined. The typical error – to mix these two streams of clients. As a matter of fact, working both with private, and with corporate Customers, you simultaneously conduct two different business, for everyone it is necessary to build the business processes and the scheme of work with the personnel. And, each of бизнесов can be rather mediocre. There is a variant – to choose one and to be focused on it.
It is not necessary to confuse this error to a situation when the organization works with private persons, but finds clients through the organizations, i.e. addressing on channel B2B. For example, the fitness center is typical B2C the organization, however corporate customers who pay a club card to the employees can make an essential share of a turn.
Whether see you a way of development of your business in a year, three, ten?
I don't call you for working out of massive business plans, but to understand logic of development of the market you should. It will allow you to react during time to changes in requirements of Clients and to advance them.
These are some questions which I will help to analyse idea of business, to find weak places and to understand a direction of the further development. To work quality of your idea from the point of view of marketing, I am compelled to send you to head "Market" of the present book, and also to other books on marketing.
As you have already understood, over business idea it is necessary to think seriously. If you have qualitatively worked these questions it will be easier to you to deduce key idea, to answer questions to improve to find new reserves for development.
Part 5. Main principles of work over business idea
The business idea, as well as any another, demands the certain approach: abilities to put and solve a problem, flexibility of mind and inspiration. More in detail about technologies of creativity read in head the Creative, and in this section we speak only about specificity of business idea.
How to strengthen business idea? In other words, how of it to squeeze out it is more than money?
The idea can be strengthened at the expense of double business.
Let's admit, your basic business is a building of "pieces of wood": you build of a summer residence and bath tree, fellings and panel board small houses. You hold accurate focus - build only of a tree. All business processes are ground on it, the personnel has high qualification at the expense of the big stream of the same orders, you aren't spent for the additional equipment etc. For the organization of manufacture you contain a warehouse – save on purchase of large consignments of goods and sell from a warehouse мелкооптовым to buyers. Each business hangs together. Still a similar example: a bath + an elephant of beauty.
Other way to strengthen your idea: translate it from a plane in volume.
Here a characteristic way of development:
Cafe – a cafe Network – Development of a brand and sale of products with brand symbolics.
Example: the network of restaurants Hard Rock Café, an essential which share of a turn are made by sale of T-shirts, badges and other souvenir production.
In America by such principle all entertaining business is constructed. Leaving pavilion with polar bears in a zoo, you get to a little shop where buy for memory of bears on vests, handles, and certainly, soft toys. And such little shop waits for you after each pavilion, and to pass by you can't in any way.
If you sell services, do additional services: the fitness center has the basic earnings on individual trainings, instead of on sale of club cards.
Remember about box business: the fitness center can publish various products in the form of books, disks, video of cartridges with courses of trainings, with councils about a food – borders for earning money aren't present.
Very often ask: and where to take business idea?
On this question there is no simple answer. Many founders of successful business system have passion which conducts them as a guiding star. They are ready to direct undividedly all efforts to an embodiment of the dream in life and at the expense of purposefulness consult with all problems, reaching one million.
Others find the business casually: has started to be engaged in something and it was involved, it became interesting, «money has gone». Someone rationally studies tendencies of development of the market, finds out opinions of experts and осознанно counts business idea potential. To some businessmen at a certain stage of development becomes all the same, than to be engaged, and they already professionally build business structures.
As speak: business will find you, will come and will tell: «It I, your business, have gone to work». But it is faster a rarity, therefore I won't risk to advise to wait on the furnace of such wonderful business phenomenon. More likely if you feel in yourselves forces, start to do that can now, and then on "a play" course will grope the way.
It is important to understand that the super-idea seldom comes in the sleep or on a beach: usually people long also work hard, before they manage to find something really standing.
Moreover, the strong business idea is not single inspiration, and complex system of decisions, ideas which gather on particles, are checked and perfected by life.
How to collect business ideas?
It is impossible to give this process on will of a case, it should be put on a stream. As you know, Japanese have succeeded in it: they suit quality mugs, with maniacal sequence stimulate each worker to bring new offers.
There are people who are capable to put forward strong ideas, - you should find in a command of such person. Be on a forward line – constantly communicate with clients: it is the best channel for gathering of ideas.
Don't shun to study competitors: one of the richest people of a planet Sam Volton, the founder of a network «WallMart», all life tirelessly did it, without passing any retail shop on the way.
We use and we advise to our clients such way for gathering of ideas:
For each accounting period (month-quarter) we form the purposes and plans. On each important parameter of business we bring an attention to the question: «That it is improved?» The concrete plan is developed, we introduce it in life, we fix result, we go further. So it is consecutive, to quality of products, the degree of service and … the size of incomes laboriously grows.
Thus, you include employees in process of working out of ideas. They feel an involvement because actively change business. It becomes interesting to them to work – in the company all time occurs something new. However, it already a part of tools of development of business - the Personnel.
However remember that the idea should be renewed regularly.
Typical error – too long operation of one idea when people already would like something the newcomer. You owe their messages behind yourselves then they will be yours. If they have started missing – means, began to look at the party, on your competitors. Unless it is necessary to you? Thus it is important not to change idea in a root, not to wash away focus, and a few to tighten up, turn faced to the market that it always looked it is fresh and it is attractive.
