September 30, 2008 at 17:36Business bricks
What is needed to build a successful business? Let's directly list the items, it will not be superfluous.
All the time the company operates, it is in contact with the external environment. The external environment of the enterprise in the broad sense is the entire business world that lies beyond it - customers, suppliers, subcontractors; circumstances, events; country laws, terms of service of third-party companies, etc. etc. One of the primary for medium and small businesses are such objects of environment as service companies. This primacy comes from the fact that small and medium enterprises as a rule do not have the ability to carry most of the business process on their shoulders and give a lot of outsourcing. As a result, it turns out that the enterprise substantially depends on its business partners: in the general case, these are suppliers and subcontractors. This, of course, risky for the enterprise - because in conditions of limited available funds, in which small and medium-sized companies often have to work, it is difficult to organize the reservation of individual parts of the business process, it is difficult to make a reserve in working capital, therefore nominally enterprises usually work with a minimum margin of safety. A competent choice of partners and the fact that the entire business environment of the company is not within the same structure helps to reduce risks somewhat — that is, the company is served in many other companies and if one of them “falls out” of the cage, all the others will continue to operate. therefore, nominally enterprises usually operate with a minimum margin of safety. A competent choice of partners and the fact that the entire business environment of the company is not within the same structure helps to reduce risks somewhat — that is, the company is served in many other companies and if one of them “falls out” of the cage, all the others will continue to operate. therefore, nominally enterprises usually operate with a minimum margin of safety. A competent choice of partners and the fact that the entire business environment of the company is not within the same structure helps to reduce risks somewhat — that is, the company is served in many other companies and if one of them “falls out” of the cage, all the others will continue to operate.
When I started my first business, I had to face the US market, so I got the opportunity to look out of the corner of their eyes what they have there and how it is being done in the sense of the service sector. After comparing the situation there later with ours in Moscow, I was somewhat discouraged.
Start with the fact that fundamentally the profitability of any company directly depends on how efficiently it operates in the market. The more efficiently a company creates surplus value, the greater its profitability. Efficiency in this case means minimizing costs and rationality in letting the cash flow of the company (which also ultimately results in minimizing costs).
There is such a sign, or a proverb, or, I don’t know, the saying: "The stream moves at the speed of the slowest component of the stream." Obviously, your business process will move at the speed of the slowest component of this process. And if your entrepreneurial risks of financial failure were partially offset by a competent choice of a business environment, then you are not able to ensure the smooth operation of the components of this environment - it is simply outside your zone of influence. And here we come across an underwater (for many) stone: your competitiveness directly depends on the quality of services delivered to you by service organizations. The more clearly they fulfill their duties for the money that you pay them, the better for your business, and for your customers, for whom you will eventually be able to complete the work on time and efficiently.
Business institutions and business environments in developed market economies are at a high stage of development, and they understand very well the contents of the previous paragraph. To build a business, you need building material - in many ways, the business does not consist of what you do yourself and the hands of your subordinates, but what your external environment provides you with - these are the business bricks from which you build your building business. If the bricks and mortar are delivered late - your building will appear too late. During a downtime, you risk losing relevance or market share in favor of a competitor.
At first glance, the blame for this should be blamed on the environment: indeed, only them should be blamed for the failure to fulfill their obligations, and in this case, “bricks” should also be blamed for your failure on the market. But the manager who has faced such a problem will say that this is not so, and one good manager redeems one thing: the ability to work ahead of such situations. And with them [situations] really need to fight.
What for? Then what we need is a business environment with the right bricks. After all, each of us is the same brick for someone else. And in the matter of correcting the situation of the full PPC [which is happening today in many homeland markets] one should not wait for the changes to appear from the outside, but start them from the inside. To cover the risks of situations of default and untimely fulfillment of YOUR obligations and try to provide their customers with the service they deserve by bringing their money to you. And do not complain that there is no solution.
- A good idea. This is the basis of the business and its very beginning.
- Good head. Without a good head, you can betray the best idea - therefore, it is vital for a business to have a head for whoever does this business.
- Straight arms. This is relatively speaking. It often happens that a person having decent thoughts in his head cannot really realize them - there are not enough socialization skills, communication skills, some personal qualities may interfere. Therefore, “straight arms” are also very important.
- Start-up capital. Under starting capital, I will mean not only assets in the form of cash and acquired means of production, the so-called liabilities, but also intangible capital - knowledge, experience and communications owned by the entrepreneur. Tangible and intangible assets have absolutely equal value and it is very difficult to convert them into each other - money in connection, experience is not directly converted to money directly.
- What this article is about. Business environment.
All the time the company operates, it is in contact with the external environment. The external environment of the enterprise in the broad sense is the entire business world that lies beyond it - customers, suppliers, subcontractors; circumstances, events; country laws, terms of service of third-party companies, etc. etc. One of the primary for medium and small businesses are such objects of environment as service companies. This primacy comes from the fact that small and medium enterprises as a rule do not have the ability to carry most of the business process on their shoulders and give a lot of outsourcing. As a result, it turns out that the enterprise substantially depends on its business partners: in the general case, these are suppliers and subcontractors. This, of course, risky for the enterprise - because in conditions of limited available funds, in which small and medium-sized companies often have to work, it is difficult to organize the reservation of individual parts of the business process, it is difficult to make a reserve in working capital, therefore nominally enterprises usually work with a minimum margin of safety. A competent choice of partners and the fact that the entire business environment of the company is not within the same structure helps to reduce risks somewhat — that is, the company is served in many other companies and if one of them “falls out” of the cage, all the others will continue to operate. therefore, nominally enterprises usually operate with a minimum margin of safety. A competent choice of partners and the fact that the entire business environment of the company is not within the same structure helps to reduce risks somewhat — that is, the company is served in many other companies and if one of them “falls out” of the cage, all the others will continue to operate. therefore, nominally enterprises usually operate with a minimum margin of safety. A competent choice of partners and the fact that the entire business environment of the company is not within the same structure helps to reduce risks somewhat — that is, the company is served in many other companies and if one of them “falls out” of the cage, all the others will continue to operate.
When I started my first business, I had to face the US market, so I got the opportunity to look out of the corner of their eyes what they have there and how it is being done in the sense of the service sector. After comparing the situation there later with ours in Moscow, I was somewhat discouraged.
Start with the fact that fundamentally the profitability of any company directly depends on how efficiently it operates in the market. The more efficiently a company creates surplus value, the greater its profitability. Efficiency in this case means minimizing costs and rationality in letting the cash flow of the company (which also ultimately results in minimizing costs).
There is such a sign, or a proverb, or, I don’t know, the saying: "The stream moves at the speed of the slowest component of the stream." Obviously, your business process will move at the speed of the slowest component of this process. And if your entrepreneurial risks of financial failure were partially offset by a competent choice of a business environment, then you are not able to ensure the smooth operation of the components of this environment - it is simply outside your zone of influence. And here we come across an underwater (for many) stone: your competitiveness directly depends on the quality of services delivered to you by service organizations. The more clearly they fulfill their duties for the money that you pay them, the better for your business, and for your customers, for whom you will eventually be able to complete the work on time and efficiently.
Business institutions and business environments in developed market economies are at a high stage of development, and they understand very well the contents of the previous paragraph. To build a business, you need building material - in many ways, the business does not consist of what you do yourself and the hands of your subordinates, but what your external environment provides you with - these are the business bricks from which you build your building business. If the bricks and mortar are delivered late - your building will appear too late. During a downtime, you risk losing relevance or market share in favor of a competitor.
At first glance, the blame for this should be blamed on the environment: indeed, only them should be blamed for the failure to fulfill their obligations, and in this case, “bricks” should also be blamed for your failure on the market. But the manager who has faced such a problem will say that this is not so, and one good manager redeems one thing: the ability to work ahead of such situations. And with them [situations] really need to fight.
What for? Then what we need is a business environment with the right bricks. After all, each of us is the same brick for someone else. And in the matter of correcting the situation of the full PPC [which is happening today in many homeland markets] one should not wait for the changes to appear from the outside, but start them from the inside. To cover the risks of situations of default and untimely fulfillment of YOUR obligations and try to provide their customers with the service they deserve by bringing their money to you. And do not complain that there is no solution.