The main aim of a business is to make money.
The main aim of a business is to make a change.
Let’s see what you think! Once you’ve read this blog, come back and vote for what you think a business should aim for.
Loading ...When starting a business, what should you aim for? It seems as though the above two should go hand in hand, and they can do. However, the more I’ve looked around at people starting businesses, their core aims usually differ, siding with one of the two.
Making Money
A business is there to make profit, right?
Find a business model that will make money and implement it so that it slightly differs to what already exists so that it can capture customers and make money. The differentiation can come from operating in a different area, applying an already proven business model to a new product or even just undercutting competitors in price.
To me, this approach covers the stereotypical entrepreneur’s ‘first venture’. Countless stories of entrepreneurs selling drinks, sweets or small items in schools. The only thing new about this, is the location, and it works! The model is proven – if you have the motivation to implement it, you will see the rewards.
The approach certainly still exists in large corporations, I’d argue budget car companies take on this approach. They aren’t investing to invent new cars, they are simply taking what exists and making it available to a new section of customers.
In my opinion (or guess as I really haven’t experienced the development of these enough to know conclusively) the initial set up and implementation of these businesses can be promising. They may grow rather quickly. However, turning it from a solid business that has concurred the niche it set out to exploit, e.g. a new area, into a leader in the industry is extremely difficult. There may be hundreds or thousands of similar businesses. Why will you be the one to take the lead, to be the one to expand out of your niche? It is at this stage, that the ability of the individual entrepreneur takes precedence, as it is up to them to make the decisions that will ultimately determine the success of the company.
Making a Change
A business is there to make a change, of course?
Make a change to your local area, disrupt an industry or change how people interact with other people or things. A business should look to create something new that adds value or improves people’s lives by solving a problem.
This approach now covers the more current ‘Silicon Valley Entrepreneur’ stereotype. “What we’re creating will change how people pay for their shopping forever” or “we want to change how people interact online, we want to make communication personal again”. They can be very big statements, they can sound genius or crazy. They need visionaries to take the lead and a team full of passion to work on it when the results are non-existent.
These businesses can take years to bring in substantial results, most won’t succeed at all. However, in my opinion there is something rather special about these businesses – they’re exciting!
Both approaches have, and will always have, a place in the world of business – in fact they are both needed! But which approach is preferred, which approach do the business people of today aspire to follow? You tell me!