According to the definition, business is an «entrepreneurial activity with the purpose of profit extraction at their own risk.» Only that business becomes successful that brings profit to the entrepreneur in the amount that allows him to pay interest on loans and wages to employees and provide a decent standard of living to the entrepreneur himself.
How does the business work? Based on the encyclopedic definition that we gave as an example, it always happens differently. For example, there are national characteristics of entrepreneurship and methods that lead to success and are traditional for different states.
In the US, there is a trendy idea of the American dream. You may be interested in how business is developing in America. There is an opinion that it is a business of a man who does everything himself and can only rely on himself. For example, such a person began his financial activities as a teenager, and his “headquarters” was his father’s garage or rented apartment. His first product was manufactured almost from old auto parts and immediately became famous in one or another market segment. So such a young entrepreneur instantly received a large commission from the Pentagon.
Isn’t that how you describe the success stories of Steve Jobs, Bill Gates, Jeff Bezos, and Mark Zuckerberg? The thing is, it didn’t happen that way. Will the public know the true success of today’s multibillionaires? These are the same people who do charity often and write textbooks about how to develop a business so that success comes to you guaranteed.
How to do business: recommendations of successful entrepreneurs
There are several apparent factors that you will need to be able to do business. First, you should be a truly passionate person. An American multimillionaire advised novice entrepreneurs to consider how a situation can profit in any environment.
To find or invent a brilliant idea for a profitable business, you need to find total focus on this search process. In simple terms, the entrepreneur does not have a division into working and leisure time. Suppose you remember the movie Pretty Woman. Richard Gere’s hero looked at the laptop screen and worked out commercial transactions in any setting. When you find your brilliant idea, all you have to do is find the source of the investment and assemble the team.
What is a brilliant idea for the business? This new demand is manifested in the mass consumer but has yet to be developed by prominent market participants. In addition, significant market players are not always willing to invest in innovative products because it is risky. However, the risk is one of the essential components of entrepreneurship, so that no one can hide from this factor.
Investors place risk in loan repayments and investment return guarantees. For example, investors may require you to provide collateral. In this principle of work, the founder of a failed start-up will pay with his property in case of failure and insufficient profits. This is the essence of one of the basic approaches of the Western banking business. Banks give people loans, and then these people become owners of enterprises that need more for the full development of the industry. The collateral asset can be resold profitably and make good money.
A successful business is always built on the foundation of a demanded product. A product is not just a thing or service but also a way to solve some topical issue of the user. Such an issue can arise simply way or artificially created by a corporation with enough resources and influence on projects of this type.
The idea behind Bill Gates was to create a low-cost, publicly available product for mass use. In this way, the Windows operating system was designed to help the user increase productivity. This is useful if you need help understanding the principles of programming and mathematics. So intuitive graphical interface will help you with this issue.
Idea of Steve Jobs was precisely the opposite. You can create an elite product, only for some, which will be an attribute of prestige and success. For example, it’s a product like a Rolls-Royce or a Swiss watch. Those who have emerged from poverty see personal success as the first factor. This is why Steve Jobs’ target audience was always willing to pay big money for the iPhone and MacBook.
In both cases, the business concept involved the dreams of a particular social group in the process, so in both cases, the enterprise’s success was achieved. Another thing is implementing the idea; you must find a significant investment. Biographers write that Steve Jobs was a master at extracting assets from the board, and bill Gates received an investment in his business project at the expense of his social position. In simple terms, he achieved this through personal connections and family.
As one of the Rothschilds said, If you want to have money for a living, you should study a lot and work well. If you’re going to get rich, you should find a great idea».
The answer to how to create an effective business correctly is always the basis of a specific idea for a particular enterprise. Moreover, the idea is a product that can fulfill the dreams of your target audience.