In this month’s guest blog post, Peter Starbuck sets out the founding steps for any new business venture. Read the piece below and feel free to digest and share on your own website or social media accounts.
All new ventures, whether they are businesses of not-for-profit organisations need what used to be called ‘a business plan’, which is now called a strategy.
This is because as little as 50 years ago management meant business for profit. Now management is an essential part of our lives. The first is the basic idea, which is the inspiration to create the organisation.
It is the purpose – the ‘Why’ question? The second is research to determine if there is a market demand for the proposed project, which may be a product or a service or a combination of both.
The research may throw-up a range of answer that may include the need for a better product than exists, which may be more complex and sophisticated, or more surprisingly, more simple.
Also revealed may be the demand for something that the customer has not realised they require, be it a new product or service. It could be new access by different forms of delivery, which includes gaining access to previously inaccessible countries of the world.
The next action is to answer the question what are the resources needed: human, material, and capital to produce the product or service. This leads to the questions are they affordable? And if they are not readily available how can they be made so?
With the resources in place and the support required, a start can be made as the final mechanics of performing management can be implemented. This is when the plan is organised into action with the necessary controls to measure essential performance.
Always to be remembers is the essentiality of integration to keep the function in balance.
Sales traditionally the description was ‘sales and marketing’, which were lumped together as the majority incorrect view was that the sales would look after themselves.
Generally so little was known about sales and marketing that they were labelled in the wrong order as marketing is the preparation to make sales work.
Fortunately, through observing the best performers in sales, such as IBM and Unilever, it has been recognised as the essential dynamic force by converting the output effort into cash.
Cash is as essential to the organisation as blood is to bodies. For as without it, the body dies. It has been correctly observed that organisations can make losses several times and survive, yet it can only run out of cash once.
About Peter Starbuck
Starting his career as a quantity surveyor while completing National Service in the Royal Engineers, Peter is now a Visiting Research Fellow to The Open University Business School and a Researcher and Contributor on Management to the British Library.
He holds fellowships with the Royal Institute of Chartered Surveyors, the Chartered Institute of Building and the Chartered Management Institute.
Other notable positions include: Peter StarbuckFounding Visiting Professor, University Centre Shrewsbury Visiting Professor, University of Chester Visiting Research Fellow, The Open University Business School Researcher and Contributor to the British Library, Alma Mater: The Open University Business School Subject Matter Expert, Chartered Management Institute.
Find out more by visiting his site http://www.starbuckonmanagement.co.uk