What is business? Understand the purpose of the business and make a profit

First, what is business? When you think about starting or running a business, everyone needs to understand what business is.

A common word in business is “make a profit”. In simpler words, you earn money. This means that “How much money can you make?” is the most important part of doing business.

But even if you make money, you shouldn’t cheat others. We have to conduct our business in accordance with the rules of society.

However, if you have any complaints like “I want to earn more.” or “I can’t make ends meet on my present salary.” how can you do business and make a profit? Here are some tips on how to do this, focusing on making money.


Business definition from Drucker’s words

First, to understand what a business is, you have to think about its definition. The definition of doing business varies from person to person, but Peter Drucker, a management guru, has a few words to say about it.

As for the definition and purpose of the business, he says, “It’s not about making money.”. Instead, he says, The purpose of the business is not to pursue profit but to create customers.

It is very famous as Drucker’s wise saying, but it is a little difficult to say “Creating customers”. We need to go into a bit more detail on what this means.

Make money by creating customers

Naturally, profits are necessary when businesses are created by companies and management. If there is no profit, I cannot do anything.

So how can we generate sales and profits? It depends on how much you can create your customers (Customer).

For example, no matter how cutting-edge technology is used to appeal to potential customers to “This is the best product right now!” sales will not occur unless the customer pays for the product or service.

So we look at our customers. What if we develop a service that listens to customers’ requests and makes them say, “I really want that product!”. In this case, customers are created on their own, and as a result, profits are made later.

Instead of focusing on making money, focus on creating customers. Drucker says that’s the purpose of doing business.

Pursuit of profit only destroys business

However, it is generally said that the purpose of a company’s business is to make a profit. Why is the pursuit of sales and profits not enough? This is because profit generating methods include “commit an injustice” and “to deceive a man ― deceive a man”.

If you want to make a profit easily, all you have to do is cheat. It is possible to deceive people. In fact, there are so many companies that focus on profit that they commit fraud. This is true even for large companies.

This also applies to small businesses and individuals doing business. Especially in the Internet business, there are a lot of people who started the pyramid scheme business under the catchphrase “earn easily”. But if you look at them, many of them disappear within a year.

Creating customers leads to business

It’s not limited to big companies. The same is true for small businesses and individuals. Especially in the Internet business, there are a lot of people who started the pyramid scheme business under the catchphrase “earn easily”. But if you look at them, many of them disappear within a year.

The reason is simple and doesn’t create customers. You may only earn a moment, but because you don’t understand Drucker’s mantra of “Creating customers” business, you quickly disappear from the net business world.

By the way, I’ve been in the Internet business world for more than 10 years, but the reason I still make money is simple. “How well can you build a site blog that can provide useful information to readers” is our top priority.


Learn the difference between business and work and understand the essence of business

When you start a business, whether you’re starting a business or working on a side project, make sure you think this way and create customers as much as possible.

There is a reason why the pursuit of profit is not enough. That’s because you can easily make a profit by cheating or deceiving people. It’s not like that, but you need to think about it from the customer’s perspective.

But not everyone can create customers. Only people with certain skills can do it. It will be the person who can make a system to generate money.

Many people do “Work”. They work on their own time and receive money in return. I can say that my job is to work under the conditions of “Work at an hourly rate of 0 yen” and “A fixed amount of salary is transferred every month.”.

Naturally, I used to be an ordinary salaryman. I go to work at a fixed time every day, do the same work, bow to my boss or client, and go home. There was no big change every day, and I spent my days doing the same work.

Meaning of doing business on your own.

However, what made me different from other people was the fact that “I was running my business on weekdays and weekends after I left the office.”.

In other words, they earned money apart from the salary they received from the company. As I said, I’ve been running pharmaceutical websites since I was a pharmaceutical student, but I continued doing it as a side job when I was a salaried worker.

Furthermore, the site worked automatically even when I worked every day. It doesn’t matter if you work during the day. So, in addition to the pharmaceutical site, I ran a number of automated monetization systems that enabled me to start my own business many times more than the regular salary I get from my company every month.

There are many people who think, “I can’t get a raise.”, “NO MATTER HOW HARD I TRY, I WON’T BE REPRESSED.”, “I have a complaint about my boss.”, “I want to earn more.”. I was like that when I was a salaried worker. But while I was working for a company, I thought, “Then, I hope I can earn money by myself.”.

But when you start a business, you don’t have a job already assigned or assigned. You need to start a business from a situation where there are no signs or products of the company, and decide what kind of business to do at your own discretion. Of course, just because you work doesn’t mean you will be paid. Money only comes when you create customers.

This is the difference between business and work. My job is to work by giving out my time. On the other hand, when you run a business, you have to think for yourself and create customers and create a system to earn money.


Business is simple

So, if you start a business from scratch and do a side job or start a business, will it be easier to make money? In conclusion, it’s easy to earn money in business. But it’s not easy. There is no easy business in the world.

Especially in the Internet business, there are characters such as “How to earn money just by sleeping” and “Make money by working 10 minutes a day”. But that’s not really a business.

After all, it’s true that it’s easy to make money in business. Businesses with simple ideas and basic structures are more likely to succeed. The more complex a business is, the more it fails. For example, if you read management books, you may find difficult formulas and ideas. But they are basically all meaningless. I can’t study “analytical method”.

In fact, there are many people who can’t earn money even if they get qualifications such as MBA or small and medium enterprise management consultant. This is because what you just learned is of little use. In fact, I know very little of such a tricky formula. But the fact is that I earn more than they do.

You need to know, but more than that, you need results. No matter how much you say “I attended an MBA at a famous university.” if you don’t make any money, it ends up as empty talk.

The more difficult the theory, the more likely the business will fail. You need to be aware that “business is very simple and easy”.

Business performance requires action.

But while it’s easy to get results in business, it takes a lot of effort and action to make it happen. That’s why sleeping won’t increase your bankbook, and you won’t be able to earn an hour of work every day.

Work, study, and act. As a result, you can earn unearned income.

I don’t know what kind of business you want to do. He may be a chiropractor or a hairdresser. Maybe he just wants to do a side job as a salaried worker.

But in any case, it takes a lot of effort and action to succeed in a side job or startup. I don’t have time to go drinking with my friends on weekday nights, nor can I afford to travel on weekends. You need to be prepared for that.


Applying Business Thinking to Today’s Companies

But I don’t necessarily recommend starting a business. You don’t have to do business on your own, you can just say “Apply business thinking to the company you work for”. In fact, I contributed to the company’s profits many times when I was a salaried worker.

I used to run an Internet business by running a site, but even though it’s an Internet business, the basic structure of the business is all the same. Therefore, if you understand the essence of business, it is not so difficult to make money from real business.

My main job is to run a website, so on the surface, it looks like I only do internet business. However, in fact, real business activities such as consulting are generating higher profits. We are also developing real business based on site management.

Specifically, we are directly partnering with companies to send customers, and contributing to profit increase by consulting. If you understand the essence of business, you can make money in both internet business and real business. This is because all businesses are simple and can succeed with the same mindset.

You should have an experience to earn by yourself.
However, there are necessary conditions whether you start a business and earn money or contribute to the company as a salaried worker. It’s a “Start a small business as a side job (Or preparing to start a business) and make money.” experience.

People who can’t make money on their own won’t be able to achieve great results in the company. If you think “I don’t have a side job, but I have made some achievements in the company.” then you need to recognize that it’s just a misunderstanding.

People who really achieve results in the company have different meanings of contribution. A person who can carry out an idea and more than double the profit of the company or start a new business and make a pillar of the company is a person who can truly contribute to the company.

To make money on a side job, you have to work hard to create customers in a situation where you don’t know if the results will really come out. Naturally, you have to practice under the situation where you don’t get an hourly wage.

Only those who are able to do so can succeed in starting a business or achieve great results as company employees.

Learn the essence of business and start a business

Business is not about profit. In Drucker’s words of wisdom, “Creating customers”.

The reason why it is not sufficient to pursue profit is that if it is the only purpose, there will be no problem to do something disadvantageous to customers. And if you engage in these abuses, the result is that customers leave in a moment and profits are greatly reduced.

Even if we say we are going to create customers, those who can “to create a mechanism to generate money” as a business rather than working on an hourly basis will be able to create customers. We need to keep moving while we don’t know if we’ll get results.

Once you understand the nature of these businesses, start a side business or startup to create customers and generate profits. If you do so, you will be able to do business while being appreciated by customers.