6 Common Sense Principles for Business

Business is not complex in reality it is based on common sense, however I smile about the phrase as well, common sense ........ is not common. Dad used to say

"Anna, business is not complex, people make it complex but business is just based on simple common sense. What is complex about these principles

1. Businesses are based on ideas - value ideas, carve ideas.
2. Business has a basic formula - profit comes from adding your own value to the basic cost of your "raw" materials. Focus on value added to create profit.
3. Business is about people. To inspire customers, inspire your people
4. Business is not about "busyness" it is about effectiveness.
5. To be effective in all you do, then keep each process, each interaction as simple as possible. There is only one complexity - how to keep things simple
6. Easiest way to gain competitive advantage, is to define your own new market constantly then you have no competitors :)

Just like golf Anna, the game is simple it is only our minds that make it complex"

Comments

[Jim Abbondante]

Very interesting! I think achieving a competitive advantage also has a lot to do with the quality of leadership that exists in any organization. I had someone ask me what I thought leadership was and I explained that 'results-oriented' leadership (especially in a business environment) is not only about being consistent in your demonstration of what 'good' looks like, but it's all about finding ways to further increase the 'real' return you're able to receive on what you're investing in your people while you're working together with them on a daily basis to get the job done on behalf of the customer or client. I explained that leadership involves discovering new and more effective ways to create even greater opportunities for growth and success on the part of each one of your people, your team as a whole, your company, and also your customers and/or clients. Leadership is all about you being in the driver's seat when it comes to you 'being' and 'doing' whatever it takes to insure the success of anyone and everyone who has a vested interest in your organization's success. There's a lot more to demonstrating and providing genuine leadership than most people in leadership positions realize.

[Anna Farmery]

Jim

Totally agree. Leadership comes from the term for steering the ships and seeing the right path. I can never quite understand how leaders can think that it is about power, facts, position....and not people. You can never be a leader without followers. Great addition to the post thank you
Anna

[Leah Fairman (Executive Gift Guru)]

You have great information here. I agree with your Dad, business is not complex and common sense does make it work. Just look at the numbers, all who have started Fortune 500 companies have started with an idea and what makes that idea flourish and brand is common sense. This does not take Ph.D. and that's what makes starting and running a business great. Anyone can do it!

[Anna Farmery]

Leah
The irony is that for all its simplicity, human beings manage to make it so complicated. I think the really great leaders do 3 things
Clear focus on simple ideas
Communicate those ideas in simple terms
Manage people to simple values, simple objectives that if achieved....

....deliver simple success!