Here’s part 3 of the eight-part series on the book, 100 Unbreakable Laws of Business Success by Brian Tracy, motivational speaker, and business author.
Part 3: The Laws of Business
This covers laws that are related to business in a very direct sense covering everything from the product to the customer. These laws, broken into fourteen categories are proven, practical, simple and effective. Enjoy this wisdom from Brian Tracy.
20. The law of purpose
The purpose of a business is to create and keep a customer. Many people think that the purpose of a business is to make a profit. However, while that may be the purpose of the individual who starts or invests in the business, a business is really a separate entity that has a purpose of its own. In fact, a good way to assess the purpose for the existence of a business is to imagine that the owners of the business had to appear in front of a tribunal each year and justify getting permission for the business to carry on. You will see immediately that “making a profit” would not be enough of a reason for the enterprise to justify its continued existence.
21. The law of organization
A business organization is a group of people brought together for the common purpose of creating and keeping customers. A business organization begins to form when the tasks that must be done to create and satisfy customers become too great for a single person. The founders must specialize and focus on the essential jobs that only they can do and delegate those jobs that can be done by others.
22. The law of customer satisfaction
The customer is always right. This is also called “rule number one” of customer satisfaction. We live in a customer-centered market economy. Never has the customer had so much information and so much power. Every company, large and small, must be thinking day and night about how to please customers faster, better, and cheaper than the competition.
23. The law of the customer
The customer always acts to satisfy his or her interests by seeking the very most and best at the lowest possible price. Customers practice economic calculation in their choices. They seek to maximize their purchases and to minimize their costs, or outlays. Customers always attempt to get the things they want the fastest and easiest way possible, right now, at the lowest possible price.
24. The law of quality
The customer demands the very highest quality for the very lowest price. This seems simple except that many companies try to violate this law on their way to the bankruptcy courts. The customer is very smart. The customer will always act to satisfy the greatest possible number of his or her needs in making any particular buying decision. Only companies that cater to the customer’s relentless insistence on ever-higher levels of quality at ever-lower prices are successful in the marketplace.
25. The law of obsolescence
Whatever exists is already becoming obsolete. The Law of Obsolescence says that everything—products, services, skills, core competencies, advertisements, marketing strategies, and business processes—is becoming obsolete with the passing of time. To survive and thrive in these times of turbulence, you and your company must be fast on your feet and prepared to deal with continual change as an unavoidable fact of life.
26. The law of innovation
All breakthroughs in business come from innovation, from offering something better, cheaper, faster, newer, or more efficient in the current marketplace.
27. The law of critical success factors
Every business has a number of key success factors that measure and determine its success or failure. Each individual has personal critical success factors, the performance of which determines his or her business future. Your weakest critical success factor determines the height at which you can use all your other skills.
28. The law of the market
The market is where buyers and sellers of products and services meet to set prices and determine the allocation of money, labor, materials, and all factors of production. The market is a fictitious place, existing everywhere and nowhere. The market represents all of the millions of buying and selling decisions that take place every day at every level of society and in every area of private and public enterprise. In a free market, resources will be allocated with complete efficiency and prices will accurately reflect supply and demand to that moment.
29. The law of specialization
To succeed in a competitive marketplace, a product or service must be specialized to perform a specific function and be excellent at satisfying a clearly defined need of the customer. It must be clear what the product is uniquely suited to do and for whom the product is designed. Products that try to be all things to all customers end up being nothing to no one. If customers are unsure of the specific use or application of the product, they will pass it by in favor of something else.
30. The law of differentiation
A product or service must have a competitive advantage or an area of excellence that enables it to stand out from its competitors in some way if it is to succeed in a competitive marketplace. Your product or service must be unique, better, or even outstanding in some way if you are going to sell it in sufficient quantities to be successful. It cannot be a “me too” product. It has to have special strengths or qualities that make it different from any of the other products or services that compete with it or that can be used as a substitute for it.
31. The law of segmentation
Companies must target specific customer groups or market segments if they are to achieve significant sales. We are rapidly reaching the end of the mass market. Today, the most successful companies are those that have been able to identify specific segments of the marketplace for which they design individualized products and services to satisfy special needs and tastes.
32. The law of concentration
Market success comes from concentrating single-mindedly on selling to those customers you have segmented as being the ones who can most benefit immediately from the unique product or service features you offer in your area of specialization. The best high-profit strategy is to dominate a specific market niche with the best product available for those customers in that niche.
33. The law of excellence
The market pays excellent returns and rewards for excellent performance, excellent products, and excellent services. Customers want the very most for the very least. They prefer higher quality over lower quality because higher quality promises greater satisfaction and fewer problems after purchasing. Companies with high-quality ratings can charge more and earn more per sale. A commitment to product or service excellence is the safest and most predictable strategy for achieving business success.
For more on this Brian Tracy series: