We’ve covered how to design your ideal life. Now it’s time to figure out how to run a business using tried and true management concepts.
Every entrepreneur will have their own style of management, but some concepts have been time-tested and iterated through different models.
Before we dive into management, let’s first take a look at the foundation…
The Three Ways to Build a Business
I believe there are three approaches to building a business:
- Buy a franchise
- Figure it out on your own
- Apply a management blueprint
They can all be equally effective – it all depends on your style as an entrepreneur. But, each has its own quirks…
Buy a Franchise
When you buy a franchise, you get a complete blueprint for building a certain type of branded company, like a UPS Store or a Subway sandwich shop. You don’t have to come up with any ideas on your own. In fact, the fewer ideas (temptations) you have to customize the system, and the more rigidly you follow the recipe, the higher are your chances of success.
Trouble is, most entrepreneurs hate being micromanaged, even by a successful recipe. Plus, this approach requires an up-front investment, leaves little room for innovation, and entails paying a share of the profits to the franchisor.
Figure It Out on Your Own
Most entrepreneurs go with the second way of building a business: the trial-and-error method. This is also a “proven system,” provided you don’t burn through all your cash reserves before breaking even.
The trial-and-error method works, but it takes 15 plus years to break through for the best of us, and most entrepreneurs never make it with that method.
You will get complete creative freedom, but do you have the grit to stay with the business until it succeeds?
Apply a Management Blueprint
Fortunately, there is a third way. I call it “using a Management Blueprint.”
A Management Blueprint is a generic franchise system that you can implement in most companies irrespective of the industry. It is less rigid than a franchise model, allowing enough flexibility so entrepreneurs don’t feel straight-jacketed.
Having combed the 10 popular business blueprints on the market, I identified seven fundamental management concepts that, combined in various ways, make up these blueprints.
Not all the blueprints incorporate every management concept, but they each use several, and none has come up with an eighth of comparable importance.
The Seven Management Concepts
These seven concepts are the building blocks of any successful management blueprint. I’m sure you’re familiar with most of them, but it never hurts to make a list…
These concepts fall within three key sectors: foundation, direction, and production. Depending on the type of business you’re running, you’ll want to develop certain aspects more than others, but each of the seven concepts is important to keep in mind.
In the next article, we’ll dive deep into each concept to see what makes it so important in the grand scheme of things.
* Preorder my upcoming book Buyable to be the first to read a more comprehensive overview of these strategies. The paperback and hardback editions are now also available on Amazon and the audiobook is coming soon.