It's not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change. ~ Charles Darvin

Business Potential Energy Versus Business Performances

BPE-125 First something about business performances. What is business performance? The performance is possibility of some individual or group to accomplish some desired targets. Business performance will be possibility of the business to accomplish business objects. On the other hand, performance is a measure of achieved results. If we achieve big results, then we will have bigger performance. If we achieve smaller results or nothing we will have smaller performance.

The influence of business potential energy on business performance has linear function, that mean following:

  • Greater business potential energy, greater business performance.
  • Smaller business potential energy, smaller business performances.

But, here missing transformation of this business potential energy in kinetic energy. Without kinetic energy with which our business will perform work, business performance will not increase. Because of that we cannot take linearity of this function to be totally true.

Ok, now we assume that this business potential energy has influence on the business performance. The factors connected with business potential energy and that have influence on business performance are:

  • Business potential energy (BPE),
  • Number of crucial business elements (N) and
  • Possibility of transformation of the business potential energy in business kinetic energy (P).

Now when we have the factors that influence on business performances, we can find the dependence between the business potential energy and business performance.

First, this dependence has exponential function. In exponential function as grow one element then growing the whole function. This function will be:

BP-Formula

Where:

  • BP is Business Performances,
  • P is Possibilities to transform business potential energy in kinetic energy and
  • N is number of the crucial business elements that we choose to increase business potential energy.

With this formula, we can obtain all crucial factors that have influence on the business performances. On the other hands, we can make exponential increasing of the business performance with increasing business potential energy, number of crucial elements and possibilities of transformation of that business potential energy into kinetic energy.

You can note following:

  • The value of Business potential energy (BPE) as will be from 0 to 1 (0 ≤ BPE ≤ 1)
  • Number of crucial elements (N) will be positive number greater from 0 (N > 0), and
  • Possibility of transformation of the business potential energy into business kinetic energy (P) will be likelihood that also can be from 0 to 1 (0 ≤ P ≤ 1).

Let’s see some examples:

Example 1 Example 2 Example 3 Example 4 Example 5
BPE 0 1 0 1 0.8
N 5 5 10 10 10
P 0.5 0.5 1 1 0.7
BP 0 2.5 0 10 3.53

We can see in the first and third extreme cases when business potential energy is 0, besides the other elements, business performance will always be 0. When we have business potential energy at a maximum level of 1 then we can utilize the potential of other elements in the formula.

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Dragan Sutevski is a business developer and consultant, helping small business owners to find their own road to success.

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