What is a business?

Business is solving problems in exchange for money.

In solving problems, we create value for the people and companies who want them solved.

What is a problem? Fundamentally is having a "bad" A instead of a "good" B.

To solve a problem is to transform the current "bad" state of things (A) into the desired "good" state (B).

So the first core element of a business is what problems do we solve, and that can be described via contrasting the current undesired state A and dream outcome state B:

A→B

The second part of a business is who do we solve those problems for?

Who has those problems? What makes an ideal customer for us versus a less desirable one? How many potential customers are there?

We will call this key component of the business ICP.

Then it is about how we solve them?

That would be the specific configuration of how we actually deliver the promised A→B outcome.
Think the essence of our product or service.

And then finally, to actually solve a problem, perform an A→B transformation and get paid for it any business has to run 3 core functions:

Attract → Convert → Deliver

Attract

You need to let your ICP folk know that you exist and attract them to have a conversation with you.
If no one knows that you brilliantly solve the most painful of their A→B problems, you won't be able to help anyone or make any business.

Marketing.

Convert

You need to make your potential customers believe that you are indeed the way to go, and they have to act on their problem now.

Sales.

Deliver

Most any deal is struck before the actual problem is solved. The deal is made based on the promise of successful A→B transformation and the faith that the customer has built in the ability of your business to deliver. But then you have to fulfill the promise and the delivered the dream outcome of A→B.

And then finally, you have to measure and understand how well your business is doing all of the above things.

You need to have a model of your business and its core functions with your real data feeding into it so that you would have clarity on how each $ of your ARR is produced.

You need that model to understand what works and what does not, where the biggest constraints are, how to fix them, are there any localised pockets of brilliance when you deliver the most value to your customers, who are you best customers, what activities never produce a return, etc.

This model and clarity are what I set out to build.

So the whole fundamental model of a business is: