In the previous post I give you some introductions on the subject of business potential energy. Now you know that every business have or might have their own potential energy. Some businesses have higher level, why some smaller.
This is the only reason why some of them are profitable and some find themselves as failing businesses.
Not All Business Elements Will Have the Same Business Potential Energy
Now, we talk about the importance of the business elements with the energy we want to have. What is important to remember is that some elements and activities can have higher, and some lower business potential energy.
How much larger will be the business potential energy of the business elements, so there will be a higher probability to have a higher speed of movement of the business to the success. Entrepreneur’s duty is to continuously grow the business potential energy in all important business elements and especially on those with higher importance for business.
Two Different Cases With the Same Business Element
Here exist two contrary events:
- If you start with the first business element, or you as an entrepreneur, you can see that this element has the biggest business potential energy. But, you cannot transform that energy into kinetic energy. In that case your big potential energy doesn’t have value, because you simply don’t know how to utilize it. You must discover the way how to utilize that potential for your business.
- If you as a business element with business potential energy have poor potential energy and you succeed to transform it into kinetic energy, that is OK, but the development of your business will still be very slow. The reason for this is because of poor business potential energy. You must find ways how to increase the business potential energy of all your business elements.
For example, you have a very good business idea high level of potential to be transformed into the successful business. How you will transform that potential in the business idea into kinetic energy that will bring success to your business?
The one and only instrument or way to do this when it comes to transforming business idea in the successful business is a business plan. If we create a poor business plan for a great business idea, we cannot expect a successful business for some time. And in that time some other entrepreneur will utilize that business idea and will make a successful business.
The Basic Concept of Business Potential Energy
Here, business idea is only one element in the business that have its own potential energy. The businesses are more complex systems that are composed from a big amount of different business elements that have their own energy.
The basic concept of this methodology is to increase business potential energy to all important business elements and in that way to increase the overall business potential energy of your business as a whole. When you succeed to accomplish that, you must work to transform that business potential energy into business kinetic energy. This energy will bring better revenue and better profit for your company.
Business Lifecycle Will Change the Importance of Different Business Elements
Another important issue that we must cover in this methodology for continuous improvement of your business performances is your business lifecycle.
Different stages of the your business lifecycle will bring different importance of your business elements with different business potential energy. Because of that you must know what is the current stage of your business lifecycle. Additionally, you will need to know the characteristics of each stage of the lifecycle. In such a way you will exactly know what business elements will need improvements in specific stages in order to increase the potential energy.