Join Eddie Davila for an in-depth discussion in this video What are the goals of business?, part of Business Fundamentals.
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- When you think of business, the culture of business, the goals of business, what do you think of? Money, profit, power, greed, crushing the competition? Look, business can be those things. Sometimes it has to be about those things. But the reality is, that for most of us that want to earn a living without compromising our morals, without hurting others to get ahead, business is about creating good things for customers. It's about satisfying our employees and our business partners. Make no mistake, business is about making money, but you can't make that money without customers, employees, and business partners.
Yeah, believe it or not business is about making people happy, making people comfortable. It's also about learning and growing so you can know how to make people be happy and comfortable in the future. But remember, business is not about achieving one of those things, it's about doing all of them. Today, tomorrow, five years from now, 20 years from now. Great business is not about overnight success, great business is about indefinite success. Contrary to what movies may have taught you, business is not just about understanding money.
To be successful in business you need to understand people. What do customers want? How do they want it? How can I get more from my employees? What kind of company do people respect? You need to understand infrastructure, buildings, roads, the internet, the legal system. You need to understand resources, supplies, raw materials, energy. You need quality resources at a good price. Business is art, and these are our paints and our canvas.
Money, people, and infrastructure, that's the tangible stuff. How about the intangible stuff? To be successful in business you also need to be aware of what happened yesterday, what's happening right now, and how I can use data, information, and knowledge, to make better decisions tomorrow. Finance, accounting, sales and marketing, supply chain management, human resource management, information technology. Instead of thinking of these functions as being about investing, selling, manufacturing, hiring and firing, think of them as tools to help you understand money and people.
Think of them as data centers. Think of them as groups of people with knowledge. Think of them as aids in making decisions that will make people both happy and comfortable. Wealth, power, and greed. Those may be cool words to motivate teenagers that dream about becoming millionaires overnight. For the rest of us, those that actually work, those that want to create a better world, those that want to become active members of our global society, get ready to learn about real business.
Because by understanding money, people, information, resources, and infrastructure, by understanding how to make customers happy, you'll have the ability to start and successfully run your own company. You'll be able to get the most out of a non-profit organization. You'll even be able to maximize governments value to the community. And in the process, you will become a valuable resource for any organization.
He also reviews the basics of the people side of business: managing employees and developing customer relationships. Last, he covers the financial and information management aspects of business and provides a basic explanation of economics, so that you can understand the relationship of your business to the bigger picture.
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- Understanding business goals, stakeholders, and resources
- Developing a product or service
- Selling a product or service
- Raising capital
- Managing employees
- Managing customer data
- Understanding finances
- Managing resources
- Understanding economics