What Are The ‘5 Parts of Every Business’?
There are 5 Parts of Every Business, each of which flows into the next:
Value Creation - Discovering what people need or want, then creating it.
Marketing - Attracting attention and building demand for what you’ve created.
Sales - Turning prospective customers into paying customers.
Value Delivery - Giving your customers what you’ve promised and ensuring that they’re satisfied.
Finance - Bringing in enough money to keep going and make your effort worthwhile.
Take away any one of these five parts, and it’s not a business.
When planning a new business or analyzing an existing venture, always begin with the five parts - they will help you discover any major issues or gaps quickly.
Josh Kaufman Explains the ‘5 Parts of Every Business’
Roughly defined, a business is a repeatable process that:
Creates and delivers something of value...
That other people want or need...
At a price they’re willing to pay...
In a way that satisfies the customer’s needs and expectations...
So that the business brings in sufficient profit to make it worthwhile for the owners to continue operation.
It doesn’t matter if you’re running a solo venture or a billion-dollar brand. Take any one of these five factors away, and you don’t have a business — you have something else.