Is It Business?

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It is strange, how many, including veteran businessmen, misunderstand
business acumen
Business is a process of creating value for your customer and charging a
premium for the value thus provided.

Let us consider some cases:

Let us take the old, many times repeated example of the coffee bean.
When you buy coffee / tea from the guy around the corner of the road and when you have the same coffee at a udippi hotel, the price is different. It multiplies many times, when you are in a five star hotel. This is classical value creation.

But when the guy across the street, uses the same tea powder more than
once to make more tea, lot of people seem to call it business acumen, is it?. Did he inform you that he is going to do it then it is still acceptable? If he gives you the choice with a rate reduction, it is business acumen.

Similarly, when a five star charges an exorbitant amount, but does not
serve you adequate portions, is it business acumen? And what if they are providing sub-standard dishes etc. Is it business acumen? You are paying to be treated royally, and they are charging you for royal treatment. Anything less, is it business acumen?

I know ice-cream parlours (big names) and bars that play with the
quantities and dilutions to squeeze z profit. People call it business acumen; is it ?

In networking forums or for that reasons all those forums that demand a
particular level of accountability, if you are playing just enough t to meet basic accountability norms, is it business acumen ?

If you have made a deal with a party for x quantities and you are
supplying x-m quantity, is it business acumen?

Then there are some who promise that they will provide people of a
particular skill for a project, but are not able to give that class of people if they still manage the results, it fine, if not will you call it business acumen ?

People play with quantity, quality, level of service besides price and call it business acumen. My school teacher would call it plain cheating.

Business, is about creating useful value to the client and charging a
worthy price for providing the right solution. And business acumen is your ability uncover more and more of the client needs and work out ways of addressing those needs with quality solutions without adding much cost-overheads such that everyone wins.

At IIEMT, we remove the gullibility in people and provide genuine
business acumen.

Sashi Menon,
Chief Mentor, IIEMT.

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