7 Critical Components for a Successful Business
A wheel is defined as a circular frame or disk arranged to revolve on an axis.
To keep the wheel functioning at an optimal level, every spoke must work together in support of one another. In the event that even one spoke fails to carry out its purpose, the entire wheel could spiral into a tailspin of malfunction.
Mark Skousen, for whom the Grantham University Business School is named, recently utilized the concept of a wheel to build a framework for what defines a flourishing business. It's called the Mark Skousen Wheel of Business (pictured above).
Online students pursuing a Business Management degree or a Business Administration degree may be somewhat familiar with the innovation, but it's widely new and fresh on the national scene.
My advice: If you're interested in any form of business success - whether it is entrepreneurial endeavors, advancing at your current place of employment, rising to an upper-level managerial position or simply entering the workforce as an entry-level employee - become familiar with the seven components of the wheel. Its contents will become of service as you aspire to newer and potentially more successful business adventures.
Here are the seven components with brief explanations:
Managers
Successful businesses have managers at the top of the ladder who create a positive and professional working environment, motivate their employees, assist in growth and care about the short- and long-term success of the organization.
"Managers are the leaders," said Niccole Buckley, Dean of the Grantham University Mark Skousen School of Business. "Managers can either lead or stop the growth of the organization."
Employees
As the organization grows, so do its employees. From a day-to-day standpoint, employees are vitally important to business success, particularly in larger companies. They are the ones developing and maintaining positive relationships with customers. The employees are also tasked with preserving the organization's reputation, as they are frequently the first line of contact for the customer.
Suppliers
This part of the wheel stresses the product. As an entrepreneur, from where will you get your products/supplies in order to run a successful business?
"Skousen started writing a newsletter in the late '70s, early '80s. He sent it all out via mail. It was all hand-done," Buckley said. "He had to know: How much is the paper going to cost? How much is the postage going to be? Do I have a post office close to me? What if I'm mailing something across the United States? Quantitative analysis is a big part of this, because you have to know your breakeven point. When am I spending too much money for the money I'm getting back?"
Society & Government
It's important for businesses to understand how they can be both financially successful and valuable to society. Having a stellar reputation also contributes to returning customers and their willingness to spread the word to others.
Competitors
"You have to know your competition," Buckley said. "If you're the first entry into a market space, what does that look like? What responsibilities do you have? On the other hand, if you're not the first entry and you're coming into an already-established industry, what are you doing to set yourself apart? What's your competitive advantage?"
Investors
This part of the wheel puts an emphasis on personal responsibility.
"If you can't manage your own resources and you can't manage your own personal finances, why would anyone trust you with their money?" Buckley asked. "And if you're an entrepreneur, how are you supposed to manage these assets if you can't manage your own?"
Customers
As you saw from the photo above, every spoke of the wheel connects to the customer. A business without customers is a business that won't last long.
"Take Zappos, for instance, where the consumer comes first," Buckley said. "They are a great example of selling an experience versus a product. Skousen has the same beliefs. You have to have the consumer always at the forefront of your mind, and you have to offer an experience, no matter what service or product you're giving."
Stay tuned to the GU blog for reoccurring future articles that will further examine each component of the Mark Skousen Wheel of Business.
For a Webinar featuring Skousen discussing the wheel in further detail, check out the video below:
About the author: Eric Sorrentino joined Grantham University as Social Media Manager in October 2011. Prior to his current position, he blogged about the Big 12 Conference for KUsports.com and was a sports copy editor for the Lawrence Journal-World. Eric received his Bachelor’s of Science degree in Journalism from the University of Kansas.
