What Is A Business Really?

A business in the most basic level is a mutually beneficial exchange of value between two parties.

Yes, we can complicate as much as we’d like, but let’s break it down first.

If person A sells apples and person B has a dollar and is hungry, there’s something to be done there, wouldn’t you agree? If person A sells the apple to person B, person B is happy with the apple and the loss of the dollar and A is happy that he’s down an apple but has now a dollar.

You can see the possibilities, can’t you?

Breaking down concepts like these helped me understand how I could fit in the market and how to start building for myself.

That’s quite easy to grasp, but how do business really get attention?

1. Find people that are actively seeking for your product and present themselves.

2. Find people that are a good fit and find a way to present themselves to them.

In the digital economy this translates to:

1. Organic Traffic: Use the algorithm and hope it presents your product to right audiences with good content, keywords and a hint of viral factor.

2. Paid Traffic: You pay platforms to place you in front of the right audience like search engine ads, meta ads, TikTok ads (there’s so many right now, this is gonna be crazy long if I list them all).

But that’s not all there is to it, you can master all of these and still be average, so what are the levers of success a business can push and pull?

The way I see things there are two levers every business can and must use to maximize the amount of value they provide so that they can maximize profit.

1. Give more value to the current customer so that they pay you more and more for your products and/or services.

2. New customers = More money.

Use BOTH to maximize value and profit! Either they pay you more for more value or more people pay you for the same.

Hope you found value in this, I’ll be diving deeper into psychology of marketing next week.

Have a great week, amigos.

- Fred Spinelli

P.S.

Let me know if this changed your view on business and your opinion on the matter, I’d love to get a discussion going on this.