Your business and its three kings: the client, the profit, and the society
The Role of a BUSINESS, for an Entrepreneur
Running a business is challenging. Period. Launching a start-up is even harder: looking at the stats, it seems like fighting against all odds, right?
Where do you get the motivation and incentive to run a business, meet clients’ needs, master your finances, while being vigilant about the competition? Does it all boil down to the drive of the entrepreneur?
Does it come from inspiration or desperation? After all, while many entrepreneurs are motivated by a strong vision to develop and execute their “own thing“, other business owners look at it as a practical option to earn their living.
The Role of a BUSINESS for society
Let’s do a step back and look at the overall economic environment. A business is not only relevant for the single entrepreneur.
Companies are the backbone of national economies:
- They deliver goods and services to the market, ultimately improving the quality of life of its client base.
- They are the primary source for job creation: governments and international agencies monitor the business sector’s health status and, when possible, they try to support it.
- They are an essential source of revenues for the government (taxes).
- They contribute to the overall economic development of society.
Overall, stakeholders strongly desire the development and growth of a business. An entrepreneur must recognise the social importance of its venture and be aware of the government and society’s increasing expectations. While these factors are extraordinary and clearly describe the valuable role and the potential positive impact of a business, it raises new challenges for the entrepreneurs.
The Business and its three kings
For its viability and sustainability, the entrepreneur has the responsibility to focus on these three aspects:
1) efficiently and effectively deliver value to the client by providing solutions to their needs (client is king). Without a client, without a proper deliver of value, there is NO business.
2) generate positive cash flow and share an appropriate value (return) to the shareholders to justify the risk taken by the investments (cash is king). If the business is not profitable, it is not sustainable.
3) take into account the rules, regulations and impact in the society and environment (society is king). Does it play by the rules?
Ultimately, a modern business will need to meet and “balance” its intrinsic functional needs, the needs of its direct clients, and those of society as a whole.
Are you doing the same right now?
Until next time, Sweat Your Assets!