To Succeed, Understand Basic Business Principles

| August 18, 2012 | 0 Comments

All successful businesses no matter the size or type have some fundamental key business principles or laws in common. According to a book by management guru Ram Charan:

Business is very simple. To succeed, an entrepreneur simply needs to follow the universal laws of business. Whether the business is a one-person shop or a billion-dollar conglomerate, they are governed by the same business principles.

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Of course, the question is: what are these basic business principles?

Greg Fisher has created a useful slideshow on the Top Ten Basic Principles. Here is his list

  • Decide what you do (and what you don’t do)
  • Decide who you serve (and focus on them intensely)
  • Decide what makes you different (and do it)
  • Manage cash flow (very closely)
  • Manage employees (incentivize them for success)
  • Manage customer expectations (under promise and over deliver)
  • Set goals (and go after them)
  • Expose yourself (tell the market what you do)
  • Persevere (through the tough times)
  • Always maintain your integrity (in everything you do)

Dan Ramsey, in his book “101 Best Home Businesses, has a similar list of the basic business principles entrepreneurs need to follow. Below is his list of eight proven steps to starting and succeeding with a cottage company you’ve selected:

  • Know your business.
  • Know your customers
  • Know the law
  • Know your assets
  • Add real value
  • Keep good customers
  • Manage money wisely
  • Do it better

Also read the article Business Principles of Every Successful Business.

Recommended Books on Business Principles:


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Category: Slideshows

About the Author ()

Isabel Isidro is the Managing Editor and Co-Founder of Her goal is to help small businesses do big business. Visit her at Small and Home Business Blog, Women Home Business, and Learning from Big Boys

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