Friday, April 3, 2020

The framework of designing a business

The frame work is the following three elements:

Heaven

Earth

Humans

Here they are used metaphorically.  Heaven represents nature and the universe.  Earth represent the business word.  Humans represents the customers, or end consumers.  What end consumers want to buy is governed by nature, and the provision of what they want is done through commerce and business.

The following three elements are the framework of a healthy company:

People

Capital

Goods

Here, PEOPLE represent the workers and managers.  CAPITAL (or Money) represent both the cash reserve and the cash flow.  A huge company with a lot of valuation on the stock market amounts to nothing if no one is buying their products and giving them cash.  And GOODS means the quality offering.

When a founder starts, he will likely have only one person, no money, no prototypes or artifacts, and no sales leads.  How to grow to a company with 1000 people who are happily reporting to work everyday and making things end consumers or customers want, that is the artistry of startup, that is what we teach in startup school.

In Chinese, the framework is referred as 天地人,人财物。A founder is not in this framework.  A founder is the chief builder, the chief fund raiser, and the chief sales starter.

A good business is a harmonious nice flow of business.  There are three elements that support the happiness:

Brand

Repeated acts

Growth

With this, the business enjoy love by its customers, being busy and occupied, and expecting more.

At the center of the framework is a magic element, called TIME.

You become famous by doing the same thing over and over.  You become rich by making small money but many many times.
Find out what people want.  The rest are details. 

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