A SCIENTIFIC APPROACH TO BUILDING BETTER BUSINESSES

BusinessFit SA shares its scientific approach to helping SMEs build better businesses by defining what constitutes a “great business idea” and establishing sustainable governance frameworks to support the growth and development of each enterprise. This methodology is welcomed support for entrepreneurs, who are already catalysts for positive change, utilising creative problem-solving and effective risk management traits.

Central to the BusinessFit methodology is the recognition that a “great business idea” is the only component of a business framework that is not duplicatable. Although entrepreneurs may obtain business ideas from others, “authenticity and self-propelled leadership” are critical defining and energising enablers of the enterprise’s vision, making a “great idea” a defining, executable, and viable business proposition. BusinessFit provides “structure, support and confidence” to these great business ideas, which is central to the purpose behind BusinessFit’s five-stage Quality Assurance process and Strategic Blueprint technology.

Defining a Great Business Idea In the BusinessFit context, a great business idea must align with four critical business considerations:

1. Value creation to the economy, society, and environment through products and/or services 2. Business logic, which paves the way for a business-minded approach

3. Purpose, Passion and Will, driving the idea to fruition

4. An executable plan, based on market conditions, internal processes and controls, and legitimacy

Value creation is paramount, requiring the business idea to create value for society, communities, and the economy, while ensuring the environment and nature are not exploited or damaged.

Furthermore, the value-adding idea must meet internal economic measures, broadly referred to as “business logic”. This logic ensures that once established and implemented, the business idea returns value through “profit” to the business and its shareholders. Ongoing profit and shareholder value creation require a well articulated and purposeful strategy, an executable plan, appropriate structures, and alignment with measurement indicators. Energy, Momentum, and Leadership A great business idea begins in a latent mental state of potential energy within the entrepreneur.

To propel the business forward, this idea requires conversion to a manifest flow of actions and activities that enable kinetic energy (energy of motion). Professor King of the King Commission of Governance suggests the leader must “blow life” into the enterprise to overcome inertia and guide its purpose, direction, and value creation. The creation and conversion of these energies by leaders and staff members is referred to as “purpose, passion and will”. Without this momentum, the idea cannot be mobilised. This inspiration can derive from a deep-seated internal sense of purpose, care for humanity, admiration for the actions of others, or a reaction to injustices or a desire to improve current conditions.

Leadership is vital for ensuring success. It encompasses both the initial vision (the great business idea) and the confidence-building and driving components, such as:

■ Drawing together experience and expertise to know how to create and deliver the intended product or service

■ Ensuring access to appropriate resources (staffing skills, raw materials, capital, etc.)

■ Building networks to engage with potential clients, suppliers, and service advisory specialists

■ Establishing a well-diversified and competent governing body to support and guide decision making.

These confidence-driving aspects of leadership do not necessarily need to be fulfilled by the business idea originator but can be drawn into the enterprise’s framework as needed. In summary, a great idea not only adds economic, social, and environmental value and returns profit, but it also must have defined steps and processes for its route to market and be supported by leadership that brings its purpose, potential, and intention to life.

The Business Framework and Functional Alignment

Beyond the initial idea and leadership, the enterprise requires a business framework to ensure the best chances of success and sustainability. Although the policies, processes, and applications of the framework are unique to each enterprise, the broad critical focus areas are the same. Leaders are responsible for building confidence that the enterprise vision meets the quality assurance expectations of its specific target market, while staffing and systems guide the journey toward success and sustainability. The great business idea requires an aligned functional framework encompassing all necessary functional areas to create, maintain quality assurances, and distribute products/services effectively. The functional activities include areas such as:

■ Human resources

■ Marketing and sales

■ Finance

■ Operations

■ Legal

■ Procurement

■ Supply chain

■ Technologies

■ Other

Every business shares similar functional components, though the detail, quality assurance, and urgency differ based on the specific product/service, market condition, delivery expectation, and technical production requirements.

Governance, Conformance, and Measurements

Measurements are critical and common across every business. Outside of its core product or service creation, a business’s focus is to be productive, adding value to the economy, society, and environment, while ensuring:

■ An ethical culture is established

■ Conformance responsibilities are maintained

■ Stakeholder expectations are met or exceeded

■ Creation of an effective governance framework

■ Legitimacy and being regarded as a good corporate citizen

It is standard practice for enterprises to be constantly aware of their internal focus on sustainability through ESG (Environmental, Social, Governance) and the effect of external sustainability influences on the business’s financial and other functional foundation activities. Conformance is a major factor in confirming compliance and legitimacy, requiring effectiveness, consistency, and discipline in adherence to laws, regulations, and adopted standards, as well as the establishment and monitoring of systems and internal controls.

Workforce Engagement and Enterprise Energy Energy is a priority within any enterprise; just as an uninspired workforce will not innovate or rise above challenges, a flat battery will not turn a motor. To drive business momentum (kinetic energy) and growth, an inspired workforce is essential. Purpose in actively attracting the right people into the business creates a highly engaged workforce, resulting in a sense of belonging, commitment, and strong will to support enterprise imperatives.

This is achieved through:

■ Recognising individual competencies and preferences

■ Implementing appropriate behaviour enhancing reward structures

■ Aligning enterprise and individual cultures proactively

■ Defining individual and team contribution expectations

■ Defining business processes and customer expectation awareness through staff inductions and team meetings

■ Encouraging the value of engaging diverse but like- minded contributors

Everyone in the business needs to know the direction of the business, be aware of potential risks and growth opportunities, understand “what good looks like,” and ultimately know how their contribution blends with others to meet governance, stakeholder, and sustainability expectations.

Enterprise Maturity Levels The final aspect in the journey from great business idea to success and sustainability is recognising existing and anticipated maturity levels. Maturity levels influence behaviour and decision-making and are critical considerations as the business grows. Enterprise maturity is observed in three specific focus areas: leadership, functional framework, and culture.

While high functioning enterprises can exist at low, medium, or high maturity levels, their management principles, processes, and staffing engagement must align to suit the enterprise’s capabilities and purpose. Maturity levels often manifest as follows:

1. Lower Maturity (Start-ups, smaller family-owned/ managed enterprises): Often characterised by centralised decision-making, where the “boss” directs activities and creates norms in the business

2. Scaling Businesses (Medium Maturity): Often prefer a highly structured organisation where the leader, board, or governing body can direct activities and implement controls to ensure customer satisfaction and financial measures are reached

3. Higher Maturity: Achieved when staff and teams begin to work together synergistically, focusing together on meeting customer, governance, stakeholder, and sustainability expectations. This level is highly innovative, with leadership, the functional foundation, and enterprise culture focused expressly on continuous improvement, customer satisfaction, building a positive reputation, and ensuring the enterprise is regarded as an effective and ethical corporate citizen.

The great business idea and enterprise vision remain the only unique aspect of every enterprise. It is the critical component in creating effective enterprises that meet and exceed customer and stakeholder expectations and help solve community, national, and global challenges. Entrepreneurs are encouraged to immerse themselves in their great business ideas – focusing on products and services that support economic development, social upliftment, and environmental protection – and engage mentors to help build the necessary business frameworks.

A great business idea is just a thought until you act on it, give it energy, and guide it to create something valuable.

BusinessFit SA Contact David White

T: +27 (0)31 767 0625

E: david@businessfitsa.co.za

W: www.businessfitsa.co.za