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Saturday, October 17, 2009

Defining Business

Now that we have an understanding of “holocognics,” let’s explore what a “business” is.

Obviously, Microsoft is a business, and so is the neighborhood dry cleaner. But, is a ten year old’s lemonade stand a “business” if it is only intended to last the weekend?

I consider any undertaking for value a “business.” That’s a very broad definition, but one that will be important in the future. Using that definition, an employee is a self-contained business.

Many people would take issue with that: the employee doesn’t pay “business taxes” or “business expenses.” Sure, an independent contractor does, but not a full time employee.

My response is: every individual makes decisions based on their perception of what is in their best interest. Thus, the very act of attempting to survive is a business since survival is an undertaking for value. The study of business holocognics can be applied broadly (and would overlap Economics in many instances).

Too broad a definition is not useful, so the following question must be asked:
What are the basic stages of an “undertaking for value” or “business”?

Here are what I consider the stages of a business:
1. Startup
2. Change
3. Exit (or end or implementation of an exit strategy)

Each of these stages can, and will, be broken down further and defined. Doing so will provide a complete and detailed understanding of “business,” or “undertakings for value.”

The definition of “value” will be the subject of a future post.


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