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We all want to be our own boss and call our own shots when it comes to how we make our money and live our lives. But not everyone has the knowledge or resources to make their business dreams come true overnight. Luckily, there are proven formulae that lead to success, and the 4Ps of business has proven to be one of the most effective models. We’ll be going over how this system can help you discover how to build a successful business today.
BEFORE WE BEGIN:
Assume that you now have the capital and resources to put up a business on your own. Ask yourself questions related to preparedness, choice of industry, the amount of time and effort it will take to grow the business, and all other relevant information. These questions boil down to the most important concern that the 4P business model is designed to address: “How will I get my business to succeed?”
The 4Ps of business, which were originally presented as the 3 P’s of success many years ago, became a well-received business principle in the numerous seminars conducted across the U.S. and Asia. When you apply these 4Ps, you’ll have actionable items for how to build a successful business today, giving you specific steps to understand and apply before you become your own boss.
1. Setting Up A Professional Business
The first of the 4Ps of business is “Professional”. Being professional in business means you provide real value to the community, and your venture has a genuine mission of presenting a solution to a complex problem. Typically, owners who build and enjoy carrying out the mission of their business often tend to get the most fulfillment out of their venture. As a result, this fulfillment will boost your morale and that of your workers, and inspire you to provide better service.
2. Improving Your Personal Life
The second P in the 4Ps of business is “Personal”. The personal angle of our life remains a solid component of our success in business. There’s nothing wrong with giving it all you’ve got for your company, but maintaining a healthy work/life balance is also essential to success.
You’ll want to structure your business in such a way that after a certain amount of time, you won’t always have to be physically present to supervise its daily process, which will leave you the time and space to cultivate your own life as well. Bear in mind that the 4Ps of business will only work when you commit to them. When things go wrong in your personal life, it can hamper the way you run your business. Learning how to build a successful business includes the recognition that your personal life will affect your work, and keeping the right balance and boundaries are critical.
The third of the 4Ps of business is Profit. Setting up a 5-10 year goal and sticking to it will help you grow your business and optimize profit. But if you want to grow it further and keep it sustainable, then you need to be smart with how you plan to use the money you gain from your business. A few of your best options would be to invest it in your business, expand your operations and hire more personnel, or to allocate the money to investments to further increase your business’s worth.
If you spend your profit wisely then your business can continue to grow in the long term, and the 4Ps of business can help you to execute your business exit strategy as deemed appropriate.
4. PESTEL Analysis
The reason the 4th and last ‘P’ was added to this system is that not all businesses are actively aware of what is going on in their industries, causing them to lose sight of important trends and updates and start trailing their competition. Hence, this is an important “P” in the 4Ps of business that shouldn’t be overlooked.
The 4th P stands for PESTEL (Political, Economic, Social, Technological, Environmental, and Legal) ANALYSIS. This critical aspect of how to build a successful business works hand in hand with any strategic planning session like SWOT (Strengths, Weakness, Opportunities, Threats) Analysis, market analysis, and knowledge of the competition. Failure to do a PESTEL analysis has dire consequences, as you will learn from some examples below.
What Happens When Businesses Don’t Do Their Homework?
Blockbuster Video, Motorola, and the taxi industry have failed or are struggling without the 4Ps of business right now because they did not assess the business landscape well enough to adjust, strategize to face the challenges, and adapt to the changing market. Many businesses have failed to catch up technologically with their competitors like Netflix, iPhone, and Uber respectively, who are now thriving and have largely eaten their market share.
Another good example of business failure due to not having a PESTEL analysis is small to medium-sized healthcare companies that neglected the political and legal aspects of their industry. This neglect of the crucial final element in the 4Ps of business eventually led to their closure due to their violations of labor laws, licensing, state regulations, assembly bills, and minimum wage compliance.
Here’s a link to a good resource if you want to learn to conduct a PESTEL analysis for your business, then study past businesses that failed and avoid the pitfalls. Using the 4Ps to build a successful business isn’t just about coming up with a good theory; it’s about proving it in real life!
The Bottom Line
To conclude, it is important that you find the right business that suits you, but it is equally important that you apply the 4Ps of business for success that I’ve presented to you if you want your business to grow and profit. With your diligence and commitment to these 4Ps, you should be on your way to the prosperity and success that you’ve always dreamed about.
You have several options if you’re still choosing the kind of business you intend to set up. You can either build your own independent start-up business, buy an existing business, or better yet, acquire a franchise business from an established company to help you get started right away with understanding their brand and operating system. The 4Ps of business have worked wonders with many entrepreneurs who have started their own franchises, and 1Heart Franchise can be a wonderful jumping-off point for success. To get started with building a successful business, get in touch with 1Heart to see how we can make a difference for you today.
I was impressed with their system, support, and their training. In fact, I saw results within months of going into the business…Kamran Ghasri (Beverly Hills, CA Franchisee Owner)
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1Heart has a proven business model which has been tested and refined over the years.1Heart consistently adapts the model to the changing market. This 1Heart background helps reduce and eliminate risk of failure.
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