The dual purposes of business
A business should serve a clearly defined purpose in the business owner’s life and it should also serve a purpose from the clients’ point of view. After all, when you look at the cashflow through successful businesses the clients provide the money for everything including the profits.
When both of the dual purposes are well understood the business’ chance for success dramatically improves.
All too often people go into business because they want to be successful, make a lot of money and lead a wonderful life. They don’t consider a basic fact of business. The value owners get from the business is likely to equal the value that the business delivers to its client base.
That reminds me of an old Irish story.
Three tourists rented a car and spent the day driving and sightseeing through the lush green country side. Late in the day, after seeing a lot of the sights in Ireland the tourists became completely lost. They saw a farmer leaning on a fence, by the side of the road and decided to stop and ask:
“If you were going to Dublin from here, which way would you go?”
“Well, the farmer replied, if I was going to Dublin, I wouldn’t start from here!”
Consider the rewards you expect as the owner and the value you expect the business to deliver to the clients.
The problem with the story is it doesn’t leave the tourists with any clear direction of what to do next to reach their destination.
The tourists want to get to Dublin and business owners want to build ROCK SOLID Businesses. Knowing the purpose of the businesses from the clients’ point of view certainly helps.
However, it may not be next up on your TRaction Plan.
The truth is that profitable businesses are much easier to run and establishing consistent profitability should be high on the priority list.
It is also true that getting clear on the dual purposes is a critical destination on the journey towards a ROCK SOLID Business.
It’s one of those ideas that makes the rest of your business development project go much easier. Once you’ve got this figured out everything else falls into place.
This brings to mind the rest of the story.
The 3 sightseeing tourists got lost on their way back to Dublin.
They see an Inn, pull in and decide to get a room for the night.
The desk clerk checks the conversion rate and says he has one available for $30.00 They each pull out $10.00, pay and head up to the room.
The desk clerk realized that he’s done the conversion wrong. The room should have only cost $25.00. He calls over the Bellboy and gives him 5 One Dollar bills to take up to the tourists’ room.
They realize that they can’t divide the 5 Dollars so they tip the Bellboy $2.00 and each take a $1.00 bill.
Now each of the 3 guests has paid $9.00. – $9.00 times 3 equals$ 27.00
The Bellboy has $2.00. – His $2.00 plus the tourist’s $27.00 equals $ 29.00 not the $30.00 they initially paid.
Where did the other Dollar go?
The neat thing about this story is that the missing Dollar represents the profit that often goes missing when business owners are too focused on making money and they lose sight of delivering value. Almost inevitably this makes it more difficult for the business to establish consistent profitability.
True long term success in business comes when the owners connects the value the business delivers to the rewards they will receive.
The Dollar is not actually missing. The Clerk has $25.00, the Bellboy has $2.00 and the Tourists have $3.00 for a total that matches the initial $30.00. A law of mathematics was broken during the telling of the story.
The R on ROCK SOLID lays the foundation for long term success in business. If you have accepted building a great business as one of the major challenges in your life then it shouldn’t be missed.
This section contains 14 modules which are listed below.
Not everyone needs to take every module.
There are often 3 or 4 modules that produce exceptional results.
There is a module selection process that starts with our Business Self Assessment.
http://www.rock-solid-business-coach.com/dsp_questionnaire.php
and then follows a process that leads to the modules that will deliver the most value at this time.
- Personal Purpose
- Personal Results so far
- Personal Vision and Balance
- Personal Balance Dynamics
- Retirement
- Public Purpose
- Business Results so far
- Developing a Business Plan
- Developing a Mission Statement
- Developing a Vision Statement
- Uniqueness
- Competition
- Pricing
- Purposes - Conclusions and Metrics
To view the information on the other 8 sections of the program click on each of the letters of ROCK SOLID in the folder below. Thank You
The ROCK SOLID Business Development Program
is designed to effectively support business coaches
in the delivery of world class business coaching.
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