The 7 P’s of businesses are different aspects crucial to your business success. If your business breaks down in any of the 7 areas, you can be in serious trouble.
Principle:
The owners of the business is the principle. Think death, divorce, bankruptcy, debilitating illness, etc. When an owner runs into trouble, it can seriously damage a business. The principle is important to the direction, strategy, connections, and capital. And they allow a business to move forward. If they are incapacitated or impaired, it can negatively affect the entire enterprise.
People:
The people are the employees and workers in a company. It only takes a few bad employees to sour the whole batch. For example, lawsuits for unethical practices can definitely put a dent in income.
Product:
The product is what the company makes. Over time, products get stale, lose demand, have problems, or get out of date. If a competitor makes a better product, more viable for the market, the company can be in serious trouble. The company must maintain viable products in the market.
Process:
If the processes are inefficient, or don’t allow for growth, then it is a matter of time before there are problems. If a competitor produces the product cheaper and more efficiently, then you are at a competitive disadvantage because you are not growing in how you work.
Priorities:
Priorities come from principles and people. If a company is looking in the wrong direction, or doesn’t change through innovation, the company can go away. Consider examples like Kodak and Blackberry.
Public:
The public includes customers. How consumers think and feel about the product and the company will change over time. If the customer base changes, demand shifts or attitude, it can dramatically affect the profits of the company. Consider New Coke in 1985 and Bud Light in 2023.
Property:
Property includes the physical structures, infrastructure, buildings, tools, etc. They get old and outdated and must be kept up in order to meet the demands of the company. A company cannot afford to go stagnant. In most businesses, things begin to break, become of limited use, or no use at all over time. Property has to be kept up, maintained, refurbished, and replaced for a company to keep up to date.
These 7 P’s of a Business are all important, and have to be maintained all together for the company to remain viable and grow. Otherwise, the company will just go away.
Read our other blog post on The 7 P’s for Business.
