I am creating an infographic about the core of business and this is what I came up with so far.
Business is what transpires between at least two individuals; at the center of their transaction is value. One of them creates and the other agnizes; the consummation is in the exchange that takes place eventually. In reflecting on businesses, I conclude that this model is particular and universal at the same time. The simplest business possible has this minimum elements and the most complex has them also.
My friend, chef Marian, makes pastry cakes – the “value” she creates; another person agnizes the products of her craft. Finally, the latter buys and thus the simplest business transaction gets consummated.
In bigger or complex businesses, the same elements exist with the value at the center, the creator/s at one end and the buyer/s or customer/s at the other end. The exchange of the product and the payment is the fullness of the value created.
Thus, understanding business requires understanding both the value creator and the value agnizer. This leads us to at least two questions: 1) why does a person create or produce something referred to as “value”, and 2) why another person agnizes the creation or produce as indeed a, or of, value? Further, is it the creation or agnition that determines value or the product itself that has inherent value?
In my succeeding contents, I will be testing this basic model with businesses in the Philippines of varying complexities. The objective is to know and understand business based on raw and independent thinking and that is apart from any business literature. The question is, is there anything new to know or understand about business from this reflection? And if there is something new to know and understand, what application is there from this?
So far, these are what I have to share from this simple infographic I came up with about a basic business model. The model presumable has the minimum elements of all kinds of businesses making it particular and at the same time universal. A basic business has value that a person creates and another agnizes. Business gets consummated in the purchase or exchange of product and money.