Why do businesses exist? And why does it matter?
Today I want to explore the two reasons that businesses exist, and how you can utilize that knowledge in your own business. A lot of people reach out to me with their business ideas, and ask me what I think. And they ask for suggestions for how to go about starting that business.
My response is always to look at the problems that you can solve, and trust me, my friends, there are so many problems out there that need solving. And every single problem that exists is a business opportunity. If you dig a little deeper, you’ll also see that every single task that you don’t want to do is a business opportunity, and there are already entrepreneurs capitalizing on that.
Landscaping, for instance, is a big one. Not many people enjoy mowing their own lawn, nor do they have the time. So what do they do? They hire someone else — sometimes this is a teenager’s first entrepreneurial endeavor. There are also full-fledged landscaping businesses that can take care of it for you. And some people actually love to mow, which can make it a win-win situation.
Map it Out
If there’s any lesson to be learned from above, it’s that businesses exist to solve problems in the marketplace. There are things that people don’t like to do, or can’t do, that others can do for them. That’s how most businesses start out. And the bigger the problem you can solve, the more valuable your business is in the marketplace.
So if you’re interested in starting a business, my first suggestion is to write it down. Ask yourself, “What are the problems I can solve?” Then, get to work mapping it out.
The three big areas to consider are health, relationships, and money. Health is a big one because many people not only have health problems they need assistance with, but there are tasks that they can’t complete on their own due to those health problems. Then, there’s always opportunity in relationships, whether business or personal. And finally, there’s money. People are always looking to make more money. So look to the problems that exist within those categories, and get creative.
Additionally, look to tasks you don’t like to do (and consequently other people don’t enjoy), and add those to the list as well. These could be golden opportunities for you.
The Three-Step Process
Mike Dillard, a mentor of mine, has a three-step process to developing a business. He teaches that you find a problem, and learn a skill to solve that problem. Then you create an elegant solution to provide for the marketplace. It’s simple, but it works. Because without identifying a problem, you’ll find it far more difficult to create a viable business.
Mapping out all of the problems you can identify is the first step to that solution. Even if you’re not sure that you can solve the problem yourself, I encourage you to write it down. Because if you’re capable of developing the skills to solve the problem, you’re capable of turning it into an elegant solution.
Outcomes and Experiences
The second reason businesses exists is to create favorable outcomes and experiences. Consider massage — some people will get a massage to soothe back pain. It’s a solution to their problem. Others simply enjoy getting a massage. And so there’s a balance between offering a solution, and offering an experience.
The travel industry is full of memorable experiences — constantly upping their game to provide 5-star experiences and opportunities. Someone who is stressed might spend a day at a spa to pamper themselves. And as much as it’s about a positive experience, they’re also looking for a particular outcome, right? To be more relaxed.
The best example might be for health and fitness professionals. A personal trainer needs to deliver results for their clients to want to continue working with them. The result becomes more important the experience, if only by a hair. And if the trainer hasn’t achieved that outcome for themselves, clients are less likely to believe that you can deliver the outcome for them.
Finding the Intersection
Of course, if these are the primary reasons businesses exist, then finding the sweet spot is where you find something really special. Look to ideas where solutions meet experiences, which meet outcomes.
If you can identify a problem and solution, the next task is to determine a way for that solution to be an enjoyable experience. That’s an elegant solution.
My hope is that this helps everyone looking to start a business get back to the most basic concept of what a business is. Then, all it takes is your personal insight and creativity to build something special.
Live your Freedom, Live Your Legacy, On Your Own Terms,
M.C. Laubscher is a husband, dad, podcaster & Cashflow Specialist. He helps business owners and investors create, recover, warehouse & multiply cashflow. You can learn more about exclusive cash flow strategies in M.C.’s new video series at https://www.yourownbankingsystem.com/