We live in a world where drones can deliver our meals, 3D printers can build our houses, AI can write our content robots can make our coffee and autonomous cars can drive us where we need to go.
Every time we turn around there’s a new technological marvel, a new way of thinking, or a new challenge we are told we can only defeat with the aid of the latest gadget, widget or app.
Leading an AI start-up I’m constantly aware of how technology is shaping our lives, businesses and behaviours, creating new opportunities and shuttering old ones.
And yet amidst this din, it’s important to keep in mind that the basis of business have not changed, and we ignore them at our peril.
After over 20 years in business, there are some simple principles of business that I believe is critical,
If you’re not getting the basics right, then it doesn’t matter how advanced your business model is, it’s not going to survive.
1. Get your financial model right
In any business, the financial model is the fundamental building block. Without a sustainable, profitable financial model there is no business, no matter how brilliant your product or service is.
2. Understand your customers
You can have the best product or service in the world, but if you don’t understand your customers, and you don’t have a compelling offering for them, then you’re not going to have a business.
3. Understand your market
Your customers are not the only key stakeholders in your business, and you need to understand all the players in the value chain and what they bring to the table.
4. Know what your competitors are up to
You might think you’re a unique snowflake, but no one believes that except you.
Your competitors are out there, and they’re working to get ahead of you. While you may not have direct customers, look for the other ways people are solving the problem you solve. For example, Netflix competes with console gaming and going to the museum.
5. Be agile
Business is not a chess game, it’s a contact sport. It’s fast-moving and fluid.
If you want to stay ahead you need to be agile and flexible.
6. Be prepared for change
Change is the only constant.
You can’t stand still, you have to move with the times, and you have to understand that your business model will change over time.
7. Don’t be afraid to fail
In business, you have to be prepared to take risks.
But you have to balance that with a healthy respect for failure, and an understanding that you might not succeed every time.
8. Learn from your mistakes
The first time you make a mistake it’s a mistake.
The second time you make it, it’s a choice.
What you choose to do after you fail will be the defining moment of your business.
9. Don’t be afraid to ask for help
You know your business and your product, but that doesn’t mean you know everything.
There’s no shame in admitting you don’t know everything and asking for help.
It’s a sign of strength.
10. Keep your eye on the prize
What’s the end goal?
What’s your ultimate vision for the business?
And are you getting closer to that vision every day?
If not, then the business isn’t working.
If you’re not sure, then commit to getting there.
