All successful businesses no matter the size or type have some fundamental key business principles or laws in common. According to a book by management guru Ram Charan:
Business is very simple. To succeed, an entrepreneur simply needs to follow the universal laws of business. Whether the business is a one-person shop or a billion-dollar conglomerate, they are governed by the same business principles.
Of course, the question is: what are these basic business principles?
Greg Fisher has created a useful slideshow on the Top Ten Basic Principles. Here is his list
- Decide what you do (and what you don’t do)
- Decide who you serve (and focus on them intensely)
- Decide what makes you different (and do it)
- Manage cash flow (very closely)
- Manage employees (incentivize them for success)
- Manage customer expectations (under promise and over deliver)
- Set goals (and go after them)
- Expose yourself (tell the market what you do)
- Persevere (through the tough times)
- Always maintain your integrity (in everything you do)
Dan Ramsey, in his book “101 Best Home Businesses, has a similar list of the basic business principles entrepreneurs need to follow. Below is his list of eight proven steps to starting and succeeding with a cottage company you’ve selected:
- Know your business.
- Know your customers
- Know the law
- Know your assets
- Add real value
- Keep good customers
- Manage money wisely
- Do it better
Also read the article Business Principles of Every Successful Business.
Recommended Books on Business Principles:
- Business Principles and Management
- The 80/20 Principle: The Secret to Achieving More with Less
- Win: The Key Principles to Take Your Business from Ordinary to Extraordinary
- Sun Tzu and the Art of Business: Six Strategic Principles for Managers
- Principles of Business