Fundamental Concepts That Apply to any Business Model
A Recent Study by LinkedIn, a popular professional networking platform, discovered that a majority of working class with higher level of job satisfaction are entrepreneurs. On hindsight, it does make sense as people who become entrepreneurs, choose a field of work they are really passionate about or solve a problem they relate to. The rise in popularity of entrepreneurship, with a host of new age start-ups being the toast of major investors have drawn a huge plethora of professionals quitting their 9 to 5 job to pursue their passion and start their own businesses. But its not always a happy ending, as majority of start-ups fail to gain momentum and end up closing up within few years of inception.
Business studies worldwide, specially those specializing in promoting entrepreneurship have taken cognizance of the current trends and have drawn out special programs in order to promote healthy and sustainable business models, which can test the harsh realities of the world and continue to prosper. But not everybody have the resources or the time to be able to access such programs and are therefore left to self-learning, trial and error methods of execution of ideas.
But even without being too technical about details, there are few fundamental concepts that apply to any successful business model and one needs to be well versed in them, in order to even stand a chance of competing in the open markets. These concepts are very general in nature, but holds true in any given scenario.
1) Strategic Planning– Strategic planning refers to a core principle of resource allocation, in order to achieve stipulated target. It forms the backbone of the vision of an organization, and require a comprehensive study of the market.
2) Sales and Marketing– Communication is a key component of sales and marketing. In order to sell an idea, one has to convince the consumers, create a demand and then work to supply.
3) People Management(HR)– Dealing with employees or colleagues requires a certain level of diplomacy and a calm and composed approach. Running your own business would mean handling your employees as your extended family. People skills play a key role in employee satisfaction, thereby affecting their productivity and retention.
4) Finance and Accounting – Wealth is a key resource and require at the very least a rudimentary understanding of finance and accounting. A well laid out financial report not only reflects the growth of a business, but also allows for analysis of non-optimized practices and an opportunity for improvement.
5) Time-Management – Another very crucial skill for a budding entrepreneur would be efficient utilization of time. The term “Time is Money”rightly sums up the idea. Having a well-laid out target, and utilizing every moment of the working hours in order to achieve the target insures that goals are achieved on time.
The above are some of the skills one must be aware of before embarking upon the exciting journey of an entrepreneur. Businesses worldwide are constantly evolving and the rules of the games are always changing with time. If there is anything that could be more important than any comprehensive study of business, it would be “Self- Belief”. An inspired human can achieve any target, and the fear of failure must never stop one from trying.