Six Elements to build a Business that Thrives

“Will my business thrive or will it struggle to survive?”

“Will my business thrive or will it struggle to survive?” At some point, every business owner has pondered this age old question.  As with all things that involve risk, a bit of up-front planning will significantly increase your chance of success. As we work with our business clients, we focus our efforts on ensuring that the fundamental elements of a sound business are present and accounted for.

Here are the six fundamental elements every business owner must establish to set the foundation for a thriving business:

Photo Credit: Emma Matthews Digital Content Production https://unsplash.com/@emmamatthews

1. Have a purpose:

Just like people, businesses need a reason for being. That purpose can be as simple as generating revenue for the business owner, or as complex as solving world hunger.  The most critical aspect of this element is that the business owner knows and can articulate to others the purpose of the business.  The purpose of the business may evolve and change over time.  However, the business owner should always know why the business exists at any point in time. 

2. Solve an existing problem:

Businesses are born out of the passion and skill of the business owner and the confluence of what is missing in the world.  Every problem has a solution.  The key to a successful business is to be the answer to an unsolved problem or an unmet need.  Even when a similar solution already exists, the owner’s distinctive purpose can be the secret sauce for filling a void in a way that simply did not exist before.

3. Establish a well-identified Target Audience:

Since every successful business is the answer to an unsolved problem, as a business owner, you should ask yourself, whose problem am I solving? The answer to this question will help you home in on your target audience or your client base. Knowing who you serve should inform what products and services you offer, how you market those products or services and how you structure the operating model for your business.

“…it’s time to establish the framework for how you will operate your business”

4. Create an Operating Model: 

Once you know the what, why and who of your business, it’s time to establish the framework for how you will operate your business.  Your operating model should be practical, sustainable for your current budget and scalable for future growth.  Pro Tip: an operating agreement is highly recommended to help you document core decisions about formation, dissolution and liquidation; management, membership, assignment of interests; and finance, accounting and taxes for the company. 

5. Build a Financial Forecast:

Every successful business owner must understand their cash flow.  In the most basic of terms, cash flow is the movement of the cash coming into the business, the cash flowing out of the business and the balance between the two.  Ideally, your business has more money coming in than going out.  However, this is rarely the case at the start of a business. Having a pulse on when the revenue (money coming in) is expected to break even with or even exceed the operating expenses for the business (money going out) can mean the difference between a business that flourishes vs a business that flounders.

6. Create a Sales and Marketing plan:

Now that you have planned the party, how do you get people to come?  “Marketing” and “Sales” are not just items that you will find on an MBA curriculum outline.  A solid marketing plan will define the value proposition for your business, the methodology you will use to attract and retain your target audience, how you will distribute your product or service, as well as define your brand.  All of these items combined will ensure that you have a consistent pipeline of sales through which you can generate revenue for your business.

“Don’t just struggle to survive... create a plan to thrive”

Establishing these key elements at the start of your business will set you and your business on the right path toward achieving longevity and success.  Need help with any or all of these elements?  Do you have an existing business, but you feel your business hasn’t reached its full potential?  Are you just getting started in your entrepreneurial journey and need some advice? AZF Strategic Consulting can help you and your business thrive.

I’d like to invite all of you reading this to share in our journey. Please stay in touch with us by giving us a follow on LinkedIn, Facebook, and Instagram. If you or someone you know is in need of a service we offer, feel free to get in touch with us.