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At the core, every business is a collection of five Interdependent processes, each of which flows into the next: 1. Value Creation — discovering what people need or want, then creating it. 2. Marketing — attracting attention and building demand for what you’ve created. 3. Sales — turning prospective customers into paying customers. 4. Value Delivery — giving your customers what you’ve promised and ensuring that they’re satisfied. 5. Finance — bringing in enough money to keep going and make your effort worthwhile.
HERE’S WHAT MAKES A BUSINESS RESILIENT: Low (preferably zero) outstanding debt Low overhead, fixed costs, and operating expenses Substantial cash reserves for unexpected contingencies Multiple independent products/industries/lines of business Flexible workers/employees who can handle many responsibilities well No single points of failure Fail-safes/backup systems for all core processes
Economic Values that people typically consider when evaluating a potential purchase. They are: 1. Efficacy — How well does it work? 2. Speed — How quickly does it work? 3. Reliability — Can I depend on it to do what I want? 4. Ease of Use — How much effort does it require? 5. Flexibility — How many things does it do? 6. Status — How does this affect the way others perceive me? 7. Aesthetic Appeal — How attractive or otherwise aesthetically pleasing is it? 8. Emotion — How does it make me feel? 9. Cost — How much do I have to give up to get this?
Living organisms — including human beings — are very complex Perceptual Control systems: we act in ways to keep our perceptions of the world within acceptable boundaries. We don’t put on a coat because cold weather forces us to — we put on a coat because we feel cold and we don’t want to feel cold. If the light entering our eyes is too bright, we find shade, pull down the blinds on the windows, or put on sunglasses — the action controls the perception, and the action we take depends on the Environment we find ourselves in at the time.