In business, potential consists of many different elements. It cannot be said that all the prospects of a newly opened (and not only) business are tied to one thing. Nevertheless, there are elements with more strategic and more weight to the development of the business and the assessment of its prospects in the future. The potential of the business, although it may contain hundreds of different business moments, mainly, in my subjective opinion, lies in 10 basic elements. Today I want to talk about them.

The main components of business potential

The basic building blocks of business potential are the things that a business depends on the most. That’s how I understand it and that’s how I talk about it, at least. It is these 10 business elements that carry a weighty part of business potential. Let’s look at them.

1. Business idea

The business idea is the primary source of a small business; that’s where it all starts in every business. And, of course, that its potential largely determines the potential of the business as a whole.

2. Business plan

A business plan as a component of the business potential should be considered from the perspective of the practical application of the business idea, that is, as an instruction of the practical application of the abstract in the form of a business idea.

3. Entrepreneur

A successful entrepreneur is in himself a very important source of potential for his business. And the potential lies in his ability to be steady and determined – I talked about that in this article. Of course, it’s not just that, many other qualities are also required, but read about that in another article. Anyway, the entrepreneur himself is probably the most important aspect of the business potential of his own business.

4. Product

What matters here is not the quality of the product itself, per se, but what problem or need the audience solves (and whether it solves it at all). It is clear that the more of a need it solves, the more business potential it will have.

5. Stock

Sometimes inventory can hurt your business performance. But that doesn’t mean you shouldn’t have them, of course. Inventory, in a sense, is the guarantor of steady sales. So find a balance. It will affect the potential of the business as a whole, believe me. In general, inventory is always a must-have, such as tax changes in 2018. Tax changes in a down economy can have very negative consequences.

6. Cash

Don’t even need to write anything, right?  More money, more potential. It all makes sense. Just want to say, this is by no means a guarantee of success. Yes, the potential is higher with money, but it still doesn’t mean that with money, business success is assured. Not at all, I’m sure, no one has yet canceled the competent handling of it.

7. Marketing

Marketing is the most important part of business, I never get tired of saying that. And, if you can market it competently, you’ll have fresh energy in your business all the time. Fresh energy is new customers, of course, pardon the poetry.

8. Sales

In business, you need to sell, not wait for someone to buy something from you. That’s why your sales team (or salesperson) is a very important link in your business. Don’t be stingy about training it. The business potential will increase many times over, that’s for sure.

9. Prices

Prices for your products should be set so that they pay for your business and make a profit. If this is not the case, there is no business potential. Therefore, it is worth thinking not how to sell cheaper than your competitor, but how to sell more expensive.

10. Location

Of course, not so relevant to all businesses, but for some, it is so fundamental that it was impossible not to include it in the list. The essence, I think, is clear, no explanation is required.



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