People give money to businesses that create value. Every business wants to make money but truly successful ones want to create value first. It turns out that value is worth a lot of money depending on the how it’s delivered and the market size. To become wealthy, find out a way to create value for…
Many of those who want but do not have a lot do not know that wealth is supposed to be created. For some reason many people believe that it is the responsibility of some to distribute while it is the sole responsibility of others to collect.
God has given everyone the ability to create and distribute wealth.
"Someone graduating from college thinks, and is told, that he needs to get a job, as if the important thing were becoming a member of an institution. A more direct way to put it would be: you need to start doing something people want. You don’t need to join a company to do that. All a company is is a group of people working together to do something people want. It’s doing something people want that matters, not joining the group."-Paul Graham
In the Stone Age you had to be really good with bows, arrows, stone hammers and spears to live well and enjoy a fulfilling career. In the Industrial Age you had to be pretty good at weaving or carrying coal to get a job at some kind of factory. Man will always need skills. In this Information/technology age, it is a little irresponsible not to know how to use the internet or learn basic tech stuff. Any professional or business that does not know how to use tech for their benefit is missing out. Only a few parts of The USA, Europe and Asia have really embraced this age and the financial returns are evident. This makes me very concerned for the over 500 million people without access to good electricity in Africa. How are they going to partake of the prosperity of this age. More schools should teach tech. The future of the next generation will depend on it. I’m looking forward to the IBM and Google of Africa. Men built these companies with their minds and hands. We can do the same if we want to.
Andrew Weissman on services like Khan Academy and Quizlet, which allow users to learn morsels of information at their own pace:
At a specific level, they each work in a way that is consistent with how people think and, 20 years into the web, desire to find information. For example, someone may think to herself, “I forget how to subtract fractions.” They then conduct a search for it, and Khan delivers a 4 minute video lesson. The whole process may take 5 minutes and is hardly interruptive.
This really resonates with me. When I think about how I learn and more importantly, re-learn, things now, it’s mainly through a quick Google search. I’m not saying it’s a better or worse way to learn, it’s just different. And it’s the way a lot of people gain (and, again, re-learn) knowledge now.
This Sunday School has been of help to me, greater perhaps than any other force in my Christian life, and I can ask no better things for you than that you, and all that shall come after you in this great band of workers for Christ, shall receive the same measure of blessedness which I have been permitted to have.—John D. Rockefeller
The idea guy: He always has ideas for the business and crafts the vision for the company. He is usually more marketing and sales oriented than technical. Some people may attribute this profile to people like Steve Jobs.
The Manager: She understands processes and people. She knows how to organize and plan towards the outcome of the business. Some people may attribute this profile to people like Jack Welch.
The Doer: The doer is usually the technical one in the team. He has a skill and has decided to build a business around it. He may be a chef who has decided to build a restaurant or an engineer who has started a consumer electronics company. Some people may attribute this profile to people like James Dyson.
Most entrepreneurs embody one or two of these profiles. Some managers are doers and some idea guys are very good managers and so on.
Passion and common sense is not enough to build a successful business. It is important that you have working knowledge of the business you are trying to build. Most people would be alarmed if their doctor confessed to them that he knew very little about his practice no matter how passionate he may seem. They would hurriedly find another person to treat them. In the same vein it is irresponsible for a business owner to think they can run a successful business without knowing what it takes to build one. Before starting a business, take some time to read and study the basic principles that are necessary per your industry, resources and sometimes even geographical location. Do not assume that being a chef will make you a good restaraunt owner.
By wisdom a house is built, and through understanding it is established. Proverbs 24:3
Why should you study business?
It is not enough to have an idea. For most entrepreneurs ideas come to us on a daily basis but a good idea is not enough to build and sustain a successful business. Business is not dependent on luck or just knowing the right poeple. If this were the case then every entrepreneur would be successful. Every business is different but all success to built on two main elements; principles and results. When you know the principles, you can create your own results. In addition to this, by carefully studying the results of other successful entrepreneurs you can find out which principles they used to achieve their success.
It is no wonder that so many successful entrepreneurs attribute some of their success to having studied those who were successful before them. Another reason it is important to study business is because what you as an entrepreneur wants and what the business or customers need may not be the same.
“Shallow men believe in luck or in circumstance. Strong men believe in cause and effect.” — Ralph Waldo Emerson
A business is a repeatable process that: 1. Creates and delivers something of value … 2. That other people want or need … 3. At a price they’re willing to pay … 4. In a way that satisfies the customer’s needs and expectations … 5. So that the business brings in enough profit to make it worthwhile for the owners to continue operation.
At the core, every business is fundamentally 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 whatyou’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 satisfi ed. 5. Finance. Bringing in enough money to keep going and make your effort worthwhile. Source:J. Kaufman’s Personal MBA
IBM is what it is today for three special reasons. The first reason is that, at the very beginning, I had a very clear picture of what the company would look like when it was finally done. You might say I had a model in my mind of what it would look like when the dream – my vision – was in place. The second reason was that once I had that picture, I then asked myself how a company which looked like that would have to act.
I then created a picture of how IBM would act when it was finally done. The third reason IBM has been so successful was that once I had a picture of how IBM would look like when the dream was in place and how such a company would have to act, I then realized that, unless we began to act that way from the very beginning, we would never get there.
In other words, I realized that for IBM to become a great company it would have to act like a great company long before it ever became one. From the very outset, IBM was fashioned after the template of my vision. And each and every day we attempted to model the company after that template. At the end of each day, we asked ourselves how well we did, and discovered the disparity between where we were and where we had committed ourselves to be, and, at the start of the following day, set out to make up for the difference. Every day at IBM was a day devoted to business development, not doing business. We didn’t do business at IBM, we built one.—-Tom Watson
If a company wants to sell stock shares to the general public, it conducts an IPO. By doing so, a company goes from the status of private (no general shareholders) to public (a firm with general shareholders).source:Cnbc.com
An acquisition or takeover is the purchase of one business or company by another company or other business entity. source:wikipedia
1. Facebook acquires Whatsapp -2014
Facebook’s purchase of messaging service WhatsApp for up to $19 billion in cash and stock is one of the largest acquisitions ever in the technology sector.
2. Hewlett-Packard buys Compaq -September 2001
US technology giant Hewlett-Packard buys Compaq Computer for $25 billion in a bid to compete with IBM.
3.Google buys Motorola Mobility - August 2011
Internet search giant Google buys the handset business of Motorola for $12.5 billion in a bid to challenge Apple in the smartphone market. Less than three years later, Google sold Motorola to China’s Lenovo for $2.91 billion.