The primary goal of a business is to create a customer!
Hi Guys,
Getting back to my online activities and time away has allowed me to reflect on a couple of issues. Some very basic things that I had forgotten!!!!
The key activity and primary goal of running a business is to create a customer.
Customers provide profits.
Without profits you do not have a viable business.
Peter Drucker, Management Guru, states that business has two primary functions and these are marketing and innovation.
Drucker states that marketing and innovation produce profits whilst all other activities produce costs!
Or to put it another more sobering way…..
....if your marketing and innovation activities do not produce more resources than your other business activities consume then your business will fail! When phrased in such stark terms we should realize just how critical effective marketing and innovation are to our success.
So what does that mean to us striving to start and establish a profitable on-line business?
It means that before we do anything we must identify and understand our proposed marketplace, our target customers/ consumers, (they may not be the same), and what problems these targets need help solving.
In essence we need a road map from A to B.
Point A being our starting point, that is we have a desire to start and run a profitable business. Point B being our planned outcome, this being a profitable business. The gap between points A and B and the activities we undertake dictating our outcome.
In my enthusiasm to get started I have forgotten this key and basic fact!!!
essentially, I have taken a couple of wrong turns in getting from A to B. This is not a problem, but rather a learning exercise in planning and execution.
So, over the next few days and weeks I will be developing a meta model on how to go about planning, launching and establishing a business as I apply my knowledge to my own business endeavors. This will be slanted very much towards on-line businesses, but as a meta model will be applicable to off-line businesses as well.
I will publish summaries as I publish on my website.
Hope my learning helps others in their journey.
Take it easy and be kind to yourself
Phil
Recent Comments
2
Thank you Phil. Yes, having a clear idea of the customer you are targeting gives vision, direction and purpose to each effort made. Blessings!
Hilda
Yep, the key is focus I am finding out lol. Onwards and upwards from now.
Phil :-)