Explanation of the steps required in business transactions to succeed in business. Also refer to process, product, service, money, sell, prospect, customer, demonstration, marketing, hiring, buy, purchase, negotiate, exchange, deliver, pay, Ron Kurtus, School for Champions. Copyright © Restrictions
Business Process Steps
by Ron Kurtus (revised 11 July 2004)
Business is the activity of making money through selling a product or service. There are specific steps to be taken in this process. There are similar steps taken in spending money to buy a product or service. In essence, they are both an exchange.
Questions you may have include:
- What steps are followed to make money?
- What steps are followed to spend money?
- How to they fit together in a business enterprise?
This lesson will answer those questions. There is a mini-quiz near the end of the lesson.
Making money
Making money is essentially a selling process. The steps involved are:
- Get a product or service to sell
- Find prospects
- Get together for a demonstration
- Negotiate price
- Make exchange
Get a product or service to sell
A business may manufacture products, assemble products from purchased parts or resell someone else's product.
People within the company may provide a service or they may contract out for such people.
Find prospects
Marketing is making others aware of the product, service and business, plus letting them know where to buy the goods. It also includes calling on prospective customers.
Just finding where the prospects are and how to reach them is a major business task.
Get together for a demonstration
Although some sales are made over the telephone, though mail or via the Internet, most are still made in person. The individuals who are planning on buying a product or service want to get a demonstration of what the business has to offer them.
Negotiate price
Assuming the product or service has the desired feature, the sale can then be made if the price it right.
Make exchange
The business delivers the product or service and the customer pays to complete the exchange.
Spending money
The process of buying a product or hiring a service is similar to selling. Note that in a business, getting a product or service often involves purchasing goods or hiring people to do some work.
The steps in this process are:
- Get some money to spend
- Find prospective sellers
- Get together for a demonstration
- Negotiate price
- Make exchange
Application
In a business enterprise, buying and selling work together:
- Get a product or service to sell
- Have some money to spend
- Find prospective sellers
- Get together for a demonstration
- Negotiate price
- Make exchange
- Find prospects
- Get together for a demonstration
- Negotiate price
- Make exchange
Get product to sell
The steps in buying are needed to get the product.
Have money
In order to get a product to sell, you must have some money to purchase supplies and hire workers.
Find prospects
You find workers by putting out a want ad.
Suppliers or hardware may contact you, or you may have to do research on where to find what you need for your business.
Demonstration
A potential worker will come in for an interview.
You may meet with a salesman to see what his company has to offer.
Find prospects
This step in the process involves marketing and advertising. Note that you also may need to purchase these services.
Get together for demonstration
Once potential buyers are aware of your product or service and know where to buy it, they will either go to the store or call to get information. Once the prospect and your sales representative get together, the product or service can be demonstrated and its features and benefits explained.
Negotiation
The final sales process of getting a commitment to turn the prospect into a customer is a form of negotiation.
Make exchange
After the sale is made, the customer pays and your business delivers the goods. Certainly there are many variations on how and when this exchange is made.
Summary
There are specific business steps to be taken in order to make money. Part of these steps include another similar series of steps in where money must be spent to purchase goods or services needed for your business.
The first step to success is the longest.
Resources
The following are resources on this subject.
Websites
Business Process Trends - Magazine site
Business Process Management Ontology - Integrated information model
Total Quality Management (TQM)
Books
Mini-quiz to check your understanding
If you got all three correct, you are on your way to becoming a Champion in Business. If you had problems, you had better look over the material again.
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Business Process Steps