All the businesses literature & courses have a complicated business to a great extent.
It has become so complex that one thinks he needs to have a PhD or an MBA to understand & run the perfect profitable business
Not so.
On the practical level, every business revolves around two & only two things - psychology & maths. Period.
Once you know that to create and run a highly successful business you need to master only these two things, you feel it's not so overwhelming.
It's my strong belief that the generations of business writers and consultants and advisors have made it more complicated than necessary.
They did do it knowingly or unknowingly is immaterial.
Now how can I say this with such confidence?
There are reasons for the same.
A couple of hundred years back most of the population was divided among four Occupations-
One, professionals - like Doctors, Carpenter, Barber
Two, Producers - like Farmers, Manufacture
Three, Traders - like Merchants
Fourth, Working class - with Skill to Offer as a Service
As we see, majority of the people were earning for self via some kind of commercial, professional or business activity.
And they were doing well. Some were very well to do than others.
It was only because they understood two aspects I am emphasizing - psychology & maths!
If today we start focusing & using these in our daily business lives, we'll be much better off than we currently are.
Let's see each one in detail.
First, maths.
Everyone must understand simple maths like
Price - Cost = Profit
Now, this may seem oversimplified & very basic. But I encounter business people every day who either don't understand this or choose to ignore it, altogether.
Another simple but crucial maths equation is
Gross Profit - All costs & expenses = Net Profit.
You'll be surprised when highly educated people seems to be ignorant of this.
For any business or profession to be successful, these two are essential math's expressions to use every day.
There are many more.
But for today, these are enough to help you start.
Now Psychology,
This is my favourite. I love it & especially applied psychology in professional & business situations.
It works at a very human level like what you want & what others want. What do your customers, clients or patients expect from you?
Even why they come to you in the first place.
Everything is encompassed with psychology.
Sadly, ninety-nine percent of business owners or professionals hate studying psychology, forget about using it in day to day life.
That's a mistake. A big one.
The fact is human psychology is involved when
- You are dealing with your Clients & Patients
- You are dealing with your employees
- You are dealing with your suppliers
- You are dealing with your colleagues & superiors
- You are dealing with your family members
In short, once you understand psychology & start using it, your life becomes better & better & better.
In old days, wise businessmen & professionals understood it clearly.
The best part is they used it to become more successful.
So can we!
The Power of Communication.
Whatever may be our business, one of the decisive factors in success is the way we talk, day after day, to the people with whom we have dealings.
We do not, most of us, realize this fact. Talking is so much a matter of course that we fail to study it. We " learn to talk" in childhood merely by imitation and throughout life we continue to use our power of speech almost automatically.
Whatever may be our business, one of the decisive factors in success is the way we talk, day after day, to the people with whom we have dealings.
We do not, most of us, realize this fact. Talking is so much a matter of course that we fail to study it. We " learn to talk" in childhood merely by imitation and throughout life we continue to use our power of speech almost automatically.