Back to the Right Track, Right Substance of the Business

Back to the Right Track, Right Substance of the Business
back to right track
Business is about making profits and generate cash. Therefore, a businessman required to understand how to read financial statements, because business is about scoring profit significantly. That’s true. However, we often encounter many businesspeople who was immersed in the search only for cash and then neglect the most basic business substance. Actually, what is the substance of a business? Hopefully this is able to give you a good understanding of the substance of the business.

Business is the process of generating profit, while profit will not be able to attend without a sale. If we interpret what is selling, we will realize that any sale occurs due to the occurrence of the transaction; somebody is buying our products; there are people who are willing to pay for something that we offer. So let's dig a little deeper, why would anyone want to pay for something that we offer? Why are they willing to pay? What makes them want to buy our products again and again?

Money is a medium of exchange value. Money is something that is used by humans to obtain a value he wants. So when people are willing to pay or give the money to us, then he is expecting something, right? This is called ‘value’. We're not actually sell the product, but we're offering a value, a benefit, a fulfillment of what the market wants.

Let's take one example, you know GO-JEK? A now-day business that is familiar in Indonesia lately. GO-JEK is a transportation service using motorbike, the interesting thing from gojek is that it runs through an online booking system, through an application on the phone based on Android or iOS. GO-JEK changed the motion of a conventional motorcycle usage culture in society. This kind of business rapidly turned the traditional transportation into the modern one: on-call service. Actually this is not just a technology problem, but further, Gojek succeeded in giving answers to issues which people is facing: expecting simplicity and practicality.

Another example, Indomaret and Alfamaret, two modern businesses (also in Indonesia) which undermine the traditional mart. We must recognize that the modern mart has succeeded in providing what people want from a mart: practical, clean place, accessible and competitive prices. Small stalls / marts still stick with the old system: the cashier with manual financial system, the place with bad / dark lighting, the inventory does not flow smoothly, and some goods that turned expired. It all makes higher need for modern stall. Indomart and Alfamart also started expanding to provide various other services, such as purchasing credit, train tickets, etc..

Think these 4

The progress of those modern businesses come from the spirit of the true substance of the business: providing the solution. This is the substance of the actual business, that business is an activity to transact value to the market, the process of bringing the benefits of the business through the products that we offer. You, businessmen, it’s time to wake up, not just focus on profit or money. Begin to think about these things:
  • Does my product deserve to be purchased?
  • Does my product already provide benefits to consumers?
  • Did my product satisfy the buyer? Or even disappointed?
  • Are the services that I offer more value than the other competitors?

If you offer a product, are your competitors capable to do the same thing even better and in cheaper prices? Remember again, the substance of the business is the value: benefits and providing solutions. If you are able to balance between the desire of the income with the desire to increase the product value, you will be able to win market / consumers’ heart. (by Rendy Saputra, CEO of KeKe Group)

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