I started thinking about how businesses were created in the last 10 years and even the past 2 to 3 decades. I have supported the articles with hashtags to focus on the category oe people that would be most interested in this particular title. Here I am not writing about specific start-ups or honouring others but instead writing my findings and diagnosis as to what businesses become start ups nowadays. I am making a comparison with the ways in which businesses were constructed and not making a case for the systems of the past or systems of today which control the markets and the global economy. The end of the article does not contain conclusions or recommendations but I have written what I believe each start up has to build up on the road to success and to avoid failure.
I began by asking myself if conducting business was easier in the past or is it easier in the present? The past 2 to 3 decades have seen the use of technology increase and the use of business management theories decrease. It is my belief, and this belief is supported by facts, that the businesses of the past have the same story to tell of their road to glory and success. There are differences in location, budget, product, eco-social factors and the time the business started but the pattern is the same, read about Sony, Pepsi, Toyota and many more.
Things changed when the world was introduced to the term ‘globalisation’ which means the world became like a village. We are all familiar with this term and we understand that it means the majority of the worlds countries have an impact on each other because of the large scope of economic connections. But what about the days before globalisation; when factory production in the USA was not affected by a war happening between two nations like India and Pakistan, or a logistic company operation in Dubai that still ran without caring that Russia decreased their daily oil production. Examples such as these cannot be seen anymore in the present day and will now impact high and low profile businesses anywhere in the world.
Through my research I found that established businesses and start-up businesses alike are just another unit we create and add into a system as a whole. Wherever you build your business you connect it to the system and feed the system with your product or service which will in turn will be fed back by the system. At this point you can imagine what the results would be if you did not connect your business to the system. You find yourself struggling to survive like Cuba and North Korea. You are isolated.
Are you now starting to ask yourself what is the benefit of this system or what is the definition of the system I am writing about? Well, I will take you on a journey so that you are able to understand the system of which I am talking.
When you are connected to the system it will guide you to use the products and services of other and at the same time it will guide other businesses to use your products and services. Some will argue that these are the fundamentals of the Trading Concept and to some extent I agree, however, it tends to be a forcing path and a driver for startup businesses. In the old days it was only the word of mouth, possibly some brochures, that would have marketed your product. If your business had some extra cash then you were able to publish an advertisement once or twice a year in a newspaper or magazine. If your product was needed by people then they would also search for you to reach you. These days you need to use multiple marketing tools that are important to get your business out there. You will use and try a number of marketing tools even if you believe they are not necessary for the business. Ask yourself about these terms; marketing, digital marketing, online marketing, social media, growth hacking, SEO, blogging, big data, data science, internet of things and many more. You may not understand most of them or the mechanisms of how they work but you will find them to be something in common with the system and the other users connected to the system. They are guiding you and promoting the use of these tools for better business outcome results. In order to use these tools you will find that you must be connected to the system.
You may argue that you are not in need of them so let’s take this example. Let’s try and open an account on Facebook for your business. You will find a business tip that shows you that using Twitter is more efficient with proof and evidence that twitter will drive you to better sales. An email might popup to inform you that numbers show that visual products are most preferred by potential customers and it is advisable to create video’s and publish them using Instagram or a YouTube platform. Things don’t stop there, a friend may tell you a story about a company that hard remarkable sales numbers because they use ad word system for advertising their products or a PayPal system for accepting payments from their clients. Are you following where I’m getting to? Can you visualize? Not Yet? Ok lets take a different direction.
Welcome to my nursery where we assure you we take very good care of your children as if they are our children. We provide professional and educated carers with high quality care and high tech classes with door to door transportation services as a free of charge extra. Visit us at our prime location in the city centre. For me this ad sounds perfect and it’s only a few miles from my home and I know other families will send their children there too. This advert can reach potential customers, the families in the 5 to 10 mile radius from the nursery. In reality this doesn’t always work as families could be willing to drive 20 or 30 miles to send their kids to a different nursery and your market share has been lost to a competitor despite your competitive location. Why is that?? In the past any business startup would focus on the location of their business, quality of the product or service and the customer care service. These were the important issues that draw success to the business. Nowadays if you startup a business and you are not connecting your business to the system you will find that you are losing a great number of potential customers, again, why is that??
No, it is not because you are not connected to the system, this may be a reason with 25% power but in fact it is because the system has succeeded in connecting customers. Yes, that’s right, on the other side of this system are connected customers. So now the system is not forcing you to connect your business to be identified by others only but also because customers are connected to this system and have been guided by the system exactly as your business is guided too.
If I am going to classify the different business components I will not classify as buyer and seller, broker or product, customer and distribution of service, user and facilitator. I will however classify as business, customer and barrier and I underline the barrier component as it is very important for business sustainability and customer satisfaction. This barrier is the system. It was extremely interesting to find that companies and businesses that I have classified as working as part of the barrier component are currently some of the most successful businesses on earth, think Google, Uber, Alibaba, Apple, Microsoft.
Things don’t stop here and there is still more to know. The system has produced a creature and this creature is not a strategy tool or a new marketing plan or a new economic system or even a financial solution for funding. A new human brain brand with a new way of thinking and behaving is the creature of the system. This leads us to the biggest problem faced by the business startup.
To maintain a place or reserve a block on the system for your business you need to be aware and have the desire to educate yourself about management, leadership, emotional intelligence, problem solving, motivation, project management, creative thinking and much more no matter what the size of your business. I totally agree with the concept and encourage every startup to do that because there is no better situation than an educated nation and business owner. This process of educating yourself is not only for you and the business, this knowledge has been transferred to the customers through the system. Customer have learned and experienced the management and business concepts so they are aware about product quality and pricing points. The system had turned customers into more needy, more demanding, cleverer, decisive and not so easy to satisfy customers.
Some will argue that this is a good indication and can only be a positive driver for businesses and companies to have better quality of products and services and I happen to agree with this statement. On the other hand are the business startups that can’t compete with that lead and will be forced to shut down. Welcome to the application center of jobless people.
I understand that this analysis is not applicable to all nations around the world and as we know that there is a classification for world nations, these are known as advanced countries, developing countries and non developing countries. I believe the world is running faster than ever before to become full with developing and advanced countries. In the future there will be no 3rd or non developing countries. Even if those naming of categories still applies we as startups businesses and business owners have to be prepared to face in the next 10 years a new category of customers who are smarter, more demanding and hard to satisfy no matter where are they from.
My findings have developed concerns that startup businesses could not find their own way to be connected into the System and if they did will they marked as a success or will it be a block by block failure. It is not always about copying others experience or working methods just because you are in the same business field. It’s about realising that not always thinking big will lead you to be big and not always starting small and growing slowly is the best route either. This is not how the system works. As a startup it is important to figure out your own way and try more with an eye to risk possibilities.
I found it amazing how from no where and without any specific reason a system had been created and acting as you connected an intelligent barrier between business units and customers and at the same time connecting all units together, feeding all the units as buyers or sellers, growing the units and sustaining the process. This is what I have found to be the Theory Of Business System.