Entrepreneurship is simply the factor that brings the other three factors together. Entrepreneurs are people willing to accept the risks and opportunities associated with combining the other three factors into a business. We are going to use Diagram 1 to shape our basic conversation of business. All businesses can be viewed as the combination of a company with goals and strategies being impacted by the external environment. Providing services or manufacturing product as a result of the implementation of strategy is operations.
All businesses begin with a product or service idea.
In order for the idea to become a profitable idea, the product or service must have characteristics that customer's value and that the company can provide at a cost less than the price the customer is willing to pay for the value provided. This value can be either tangible or intangible. Understanding what benefits you are providing your customer is a very important aspect of business. Sure, they sell both hardware and paint, but many customers are buying more. To be successfully long-term, businesses must provide the value to their customers at a profit.