"The Five Parts of Every Business"

I'm enjoying The Personal MBA, though I don't think I'll be able to finish it before I have to return it to the library.

Roughly defined, a business is a repeatable process that:

1. Creates and delivers something of value ...
2. That other people want or need ...
3. At a price they're willing to pay ...
4. In a way that satisfies the customer's needs and expectations ...
5. So that the business brings in enough Profit to make it worthwhile for the owners to continue operation.

One point that caught my attention: while it means more competition, the fact that other businesses are succeeding in an area at least means that there is demand for what they're producing. So, if there's existing competition, it at least indicates there are some potential customers, avoiding one pitfall.