Like Henry Ford understood the relationship between the Ford Motor Car and the Ford Motor Company (which manufactures, sells and services the car), you must understand the connection between all the parts in your business and how your company relates to the world.
Here are the essential parts of your business:
Perhaps you’ve spent your life working in an industry. You know all about that industry from the inside. But building a business requires going outside. You must consider your customer’s needs first and foremost. No room for ego-centric thought, you must be client-centric.
Every customer is being pursued by your competitors. They are all making offers to solve the same problem your business solves. Your job is to analyse those solutions, and know why yours is better. What’s different or unique about your solution?
3. Distribution Channels
There are numerous channels of distribution available to you, but you need to know which ones are most effective for your business. The channels you ultimately choose will determine your reach, your cost and ultimately your bottom line profit.
How will you get the word out about your business? You could get on the news by doing something newsworthy, or by buying advertising. Get yourself out there and shout as often as you can.
This involves funding your new business. Likely, your first steps will be financing through your savings, your family and those you know. Down the road, investors may be a possibility, but all the pieces of your business must be running smoothly together.
The strategic part of your business is what happens inside it. They include Strategy, Marketing, Operations and Finance, the four essential functions in your business.
The tactical aspect of your business overlaps into Marketing, Operations and Finance. This is the execution of the strategy that you have created.
All the work done by the workers in your business falls into this category. The tactical part lays out the tactics, the incremental part performs them.
Each of these parts must collaborate with the other parts to form a whole. Unless they fit together in a collaborative, highly systematic way, your business will be in chaos. And when it comes to building the most successful small business in the world, chaos simply will not do. That business, the successful one, must grow out of order.
All the parts of your business must integrate together, and work together, seamlessly and consistently. Anything less and you’ll spend so much time running around between the parts, that’ll you’ll never give any part the focus it deserves and requires.