X-ecutive

Common Sense Business

I have recently found myself in several discussions both professionally and personally that eventually turned to what I call business basics or common sense business. The discussions often begin about either a experience someone had with a business, or when someone interested in starting or acquiring a business.

Business is about providing a product or service to a customer at a price that provides profit to the seller and a value to the consumer. The unique customer/provider relationship is the key component of any business. While product quality, price competitiveness, and other presentation issues are business productivity enhancers, the people aspect of doing business must be the prime consideration of any growing concern.

It amazes me how often this basic concept is forgotten. Nearly all successful entrepreneurs understand and exercise aggressively consumer relationship building principals when starting up a new venture. No business has ever survived with out a customer base. Since the customer is the foundation and life of any business why is it such a hard concept to propagate among going concerns.

I understand that there are people out there that just do not have the ability to listen, understand, assess, converse, and fulfill the need of a customer. But if a business is not able to successfully propagate the necessity of this process to its people it should not be in business. The propagation of successful consumer relations should not just focus on the CSR (customer service representative) it must be, in some form, a foundational principal of any organization.

I am concluding a business relationship with an individual today base solely on her inability to execute the process. She is a nice person, she intends well, is by no means offensive in anyway but in terms of providing the basic level of service required in her industry, she fails. Why, she doesn't listen well, she doesn't assess what she has herd, she don't communicate consistently and doesn't fulfill the need of her customer. In short she fails at customer service. It wasn't about price, her fees, or the product. It is about service and the customer relationship.

I get asked regularly about how to start or pick a business to develop. I am always hesitant to give advice as building a business, in my opinion, should be a personal interest item. I do, however, give several evaluation points for consideration. Here are a couple:

Decide where you want to be. This means both geographically and in what type of environment are you happiest. Before ever considering a business commitment that will tie one to a location, be sure you want to be where you intend to do business. Secondly, do some self evaluation and figure out the type of environment that you are most comfortable in. It will not necessarily determine the type business to develop, but it will help in planning your role in conducting the business.

Understand the needs of the community in relation to your potential business idea. Community is a fuzzy concept in business today. It refers to the sphere of consumers that can be reached to conduct business with successfully. To often a good business idea is implemented in a way that it is either inconvenient or fails to meet the needs of the community.

Do not fall into the trap of thinking you are the average consumer. Hopefully you are a consumer of the product you plan to promote, but many a failed business focused on a narrow perspective of consumer needs based on what the proprietor needed as a consumer. We are all unique. There are general segmentations among consumers by industry and product but to assume you are the average is a recipe for failure. By the vary nature of the idea of being a business operator, you are not an average consumer.

Understand your competitor and their product supply chain. You must be able to at least meet if not improve on the product offering from a supply, price, and quality perspective.

Develop the foundational principals that will guide your business development. Before a business plan is ever developed, develop foundational principals. These are basic tenants about how you will go about conducting business see my prior post for broader discussion.

Addressing the consumer relationship as a foundational principle is essential. Regardless of the type of foundational principle, it should relate to the basis on which the business is to be formed. It should be in writing and should only be changeable via vote of the controlling committee. Foundational principles are guiding tenants and their propagating should be a part of any business plan.

It is not my intent to lay out a business planning process, rather to recognize that the basics of good business are not complicated. They are common sense. One of my favorite business success speeches is both a book and tape from a now old but effective motivational speaker Zig Ziegler. It is called acres of Diamonds. Many years ago he approached these same basic ideas as a business motivational platform. They are still as true of principals today as they were then. Why does there then seem, at times, to be such a lack of common sense in business today?

posted by Unknown @ 7:33 AM