Business Philosophy

Every business owner needs to define their own unique business philosophy if their business is to operate successfully. There are many business philosophies and it can be a very confusing task for a person starting, a new business to define the idea(s) they have for their particular enterprise. One of the simpler ways that I have found for newly forming or formed businesses to define their own philosophy is for them to use the Quaiity-Service-Price method.

The Quality-Service-Price method of defining a business philosophy is as follows: In every business, the owner needs to decide on the quality of merchandise, the level of service and the price he (or she) is going to charge.

As an example, any business owner that decides they are going to sell the highest quality merchandise, give the very best service and at the same time, sell at the lowest price in town, is probably not going to survive for very long. You can do any two of the three or even one of the three but not three of the three and survive.

Take Walmart, when it started Sam Walton decided to go with only one of the three. Walmart went with “PRICE”. For people old enough, you will remember when Walmart was opening several new stores every month, the quality of their merchandise was (to be kind) not very high and their service was terrible, but they sold for a lot LESS.

Without a philosophy, a business will have a challenging time making a go of it.

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