The objectives of any business is fundamentally the same. The thought is there’s just two key elements of any organization, which is to provide a product or service, and then survive by profiting from it. Clients and customers just care about one thing however.
All that customers want is the benefit of the end product at a reasonable price. The flip side is profit. That all of the elements which goes on behind the scenes costs money. Calculating the sum of all these costs, and then charging the client is what’s doing business.
Business is the supply of a product or a service to the end user at a marked up price, which allows the company to continue to exist, to realize a profit, to provide and survive.
If a business doesn’t specialize, or isn’t unique in their particular industry, then the chances of winning the client becomes slim. This can prove true for a number of reasons.
All businesses are fundamentally the same, and the objective opinions come from those who aren’t constrained by the detailed knowledge of the said industry.
All Businesses Are Generically Similar
Although a restaurant is polar different from a sawmill, just as a taxi service is completely different in function and practice from an Accountant or a lawyer.
But the two key elements that they all share, what every business has is a product or service to offer that they need to profit from. All the customer cares about is if they’re getting a quality product at a fair price that they can afford.
The customer is wondering how they can benefit from experiencing the end product. How it’s brought to market, how much profit the business is making is completely irrelevant to them. That’s the businesses concern, not theirs.
The business to provide this product or service may need to employ specialist skills, purchase capital equipment, deal with labor relations, motivate marketing and managerial personnel.
All this just to serve the client who wants product ‘X’ delivered on date ‘Y’ for an agreed price. How that happens, they don’t care.
To Make A Profit
Businesses survive by making a profit. There’s no other purpose for a business to open its doors unless they realize revenue. Without profit, the company can’t survive regardless of their expertise.
There’s are exceptions when profit isn’t realized such as using a “loss-leader,” or by using market share capture initiatives, etc. At the end of the day, the only way businesses stay open is by making a profit. Revenue which exceeds expenses.
The combination of all the elements which goes on behind the scenes all cost money. Manufacturing, purchasing, training, marketing, research and development, all occur on differing degrees, this prior to the product being offered to market.
Knowing the total sum of all these costs and then charging them as the final price to the client, is the process of doing good business. Adding a mark up to that cost, is the core principle of running a successful profitable entity.
The final price is dictated by what the external market can bear, along with how exclusive the product is. Competition, the fluctuating cost of raw materials and manufacture, the cost of staff, and the clients ability to be willing to pay for it.
The Need To Specialize
There’s a reason why clients will often demand specialists in a particular field. A consultant who’s working on a specific project in a specific area of a business, will have this proprietary knowledge. The more specific, the more money they can charge.
In the effort to grow a business, this in conjunction with having a strategy and extended planning in place, this especially if it’s specialized knowledge in specific areas, extending it too far can deter progress.
The Role Of The Non-specialist
For instance, a specialist consultant who’s in the health and fitness industry may need to focus primarily on the day to day operations of the health center, such as management, staff training, maintaining the equipment, etc.
Conversely, someone who’s not a specialist will focus more closely on the fundamentals of operating the business, such as increasing membership, the retention of members, quality and consistency of service, and finding new sources of revenue.
All of the proper processes and procedures need to be in place and be operating efficiently in the background, while the focus being on expanding the business.
A non-industry specialist’s objective viewpoint will be constantly monitoring and examining the overall bigger picture of the business, this without being constrained by the small day to day details which doesn’t affect the overall goal.
All that the clients want is the precise product or service available at an agreed time for a reasonable price. How this happens isn’t their concern. Once the business doesn’t deliver or the system is too complicated for the client, they will just turn to a competitor.
Differences Of Opinion
An objective opinion, this from a clouded viewpoint can at times give greater return in the grander scheme. It may involve working in conjunction with those that has specialist knowledge in a key area.
The long-term view will expand the business, this usually faster and more efficiently towards their primary goal. This will also provide their clients the product or service at a cost which brings greater profit, enabling the company to maximize their reach.
The first thing to do when contemplating the exact specialist that’s needed, such as a consultant, is to understand the exact reason for seeking this external expert assistance.
Know what the exact reason is for doing so, this by determining what’s not working, what could be done better, is it a symptom or a cause that’s not satisfactory.