When a leg is removed from a 3 legged stool the stool can not stand. This is an analogy often used in business and should be considered when you research a business opportunity. While evaluating any opportunity you’ll want to see that the strength of each of the legs are balanced and have the strength to hold up the stool (Business).
What are the 3 legs of the business stool?
People
The number one most important part of a business is people. The people who work for the business; the people who work in the business; the people in the industry; the people who buy the business product and the owners of the business. They are all important considerations.
You must feel comfortable with the people you are working with and believe in them and act in a manor to make them believe in you.
You must understand who your customers are, what they want and where they are located. This is traditionally called developing your target market. Additionally when your target market comes in your door you must treat them with integrity and respect, and it never hurts to smile and be friendly.
Process
Processes create efficiency. When you perform a task in your business are you completing it in the most effective manor. Do you know the order in which you do your daily activities for your business. They should be as ingrained as waking up, brushing your teeth and washing your face. I previously worked for one of the most process focused companies in the world. UPS. They measure everything from how long it takes the driver to turn off the truck, turn and get out of his seat, find the key to open the back of the truck. They run all aspects of their business by measuring efficiency and focusing on making the process improvements to improve.
By the way if your processes are that ingrained then you should step back and look at them objectively to see if they can be improved.
When evaluating a business you must validate that the processes are in place. If they don’t exist then you will have to make them up as you go. If you are new to the business or industry then you’ll see then having processes in place will tremendously decrease the cost of your learning curve. If processes aren’t in place then you should probably toss that business aside since it will be costly and overwhelming to manage.
Technology
Technology is an important piece to every business but it’s important to recognize that even the best technology can not be helped without the best people and processes in place. Automating a bad process will drain a company of money quickly. However, when processes and people are in place technology will catapult your business to the highest levels possible. Technology can be leverage to help any business no matter how small and is an absolute must if you want your business to grow over the long term.
Finally no business venture will be successful if you don’t commit. There are many opportunities out there. You need to find one that fits your personality and lifestyle. But don’t forget to consider the 3 legged stool when evaluating your next business opportunity.
