Business is the art of being competitive- being in demand.
You may have heard of businesses going bankrupt or closing down, for various valid reasons. However, it is not as inaccessible as it is often presented. I’m here to invite you to start your own business journey sooner rather than later, ideally even before you leave home.
Trade or business is often encouraged by Islamic tradition, honouring honest trading and sponsoring important works for public good. We encourage you to build equity and legacy through business, rather than relying entirely on an employee’s salary or wage with minimal capital gain.
Read along and see if you are indeed, built for more.
What is business ?
Business refers to the organised efforts and activities of individuals to produce and sell goods and services for profit. It can range in size from solo entrepreneurs and small startups to large multinational corporations. Typically, the purpose of a business is to fulfil the needs and demands of customers while generating profit for its owners or shareholders. Businesses operate in various sectors, including manufacturing, retail, services, and technology.
What is the purpose of business ?
The purpose of a business goes beyond simply making profit. While producing and selling goods and services for profit is a fundamental goal, businesses also play a significant role in changing the world. They drive economic growth, innovation, social change, and environmental sustainability. In addition, businesses provide individuals with a means to earn a livelihood through activities such as freelancing, retail, food services, and manufacturing.
They also aim to improve lives by creating positive change in communities and addressing societal challenges while remaining profitable. Many businesses further contribute by helping the needy through philanthropic activities or by integrating social impact into their operations. Moreover, businesses support peace and prosperity by aligning their strategies with economic development and stability, helping to build strong and prosperous societies.
Business from an Islamic perspective
The Prophet (s) was involved in business even before his prophetic mission began. He worked alongside his paternal uncle, Abu Talib, gaining valuable experience in trade and commerce from an early age. This shows that business and honest work have always been respected and encouraged.
He travelled for business to Shaam and actively participated in trade. He also conducted business in well-known markets such as Majannah and ‘Ukath. These markets were prominent during the time of Jahiliyyah, where merchants gathered to buy and sell goods. This highlights the importance of trade as a means of livelihood and economic activity even in early societies.
Business and trade are also mentioned in the Holy Quran. Allah says:
“For the protection of the Quraysh, their protection during their journeys in the winter and the summer. So let them worship the Lord of this House, who feeds them and gives them security from fear” (Qur’an 106:1-4)
This verse emphasises how Allah provided for the people through trade and ensured their safety during their journeys. In summer the Quraysh travelled northward to Syria and Palestine, for they are cool lands, and in winter southward to the warm lands of Yemen, etc.
Trading also teaches important values in Islam. It teaches submission by reminding us that Allah is Ar-Razzaq, the Provider, just like how birds trust Allah for their sustenance. It teaches Taqwa by reminding us that Allah sees everything we do, encouraging honesty and discouraging cheating.
Furthermore, trading teaches us to think about the Ummah, as Allah has placed us on this earth to serve others and contribute positively to society.
Three key business strategies
The Three Value Disciplines framework was developed by Michael Treacy and Fred Wiersema. It explains how businesses achieve success by focusing on one of three key strategies while maintaining acceptable standards in the others.
1. Operational Excellence
This discipline focuses on delivering products or services at the lowest cost with high efficiency and reliability.
- Streamlined operations and standardised processes
- Emphasis on cost reduction and efficiency
- Reliable and convenient customer experience
- Limited customisation (“one-size-fits-all”)
Goal: Be the most efficient and cost-effective provider in the market.
2. Product Leadership
This discipline focuses on innovation and offering the best, most advanced products.
- Strong research and development (R&D)
- Continuous innovation and improvement
- Quick response to market changes
- Creative and skilled teams
Goal: Be a market leader through cutting-edge products.
3. Customer Intimacy
This discipline focuses on building strong relationships and delivering customised solutions to customers.
- Deep understanding of customer needs
- Personalised products and services
- High-quality customer service
- Strong customer loyalty
Goal: Build long-term relationships and maximise customer satisfaction.
Key Idea of the Model
- A company should focus on one discipline to excel in.
- It must still maintain acceptable performance in the other two.
- Trying to lead in all three usually leads to failure or lack of clarity.
The Three Value Disciplines model helps businesses choose a clear strategy for success. Whether focusing on efficiency, innovation, or customer relationships, companies must align their operations, culture, and goals with their chosen discipline to stay competitive.
Three important questions before starting any business
Q1: Who are my customers?
Typically, your customers would be individuals, families, businesses or government.
Q2: What do they Want?
Individuals may need consumer products & services, online solutions or professional services such as financial, health, law, tax, etc. Organisations may need professional consulting, business products, services & solutions, operations & maintenance, technology or manpower. You can branch out in retail, food, health, online businesses, etc.
Q3: How can I successfully provide services?
A successful business depends on several key factors. Understanding the market helps identify customer needs and preferences, while providing high-quality products or services builds customer satisfaction and loyalty. Innovation keeps a business competitive, and strong leadership ensures effective decision-making and team motivation. Good financial management supports stability and growth, while excellent customer service and marketing help attract and retain customers. Additionally, adaptability allows businesses to respond to changes, and networking creates opportunities for growth. Above all, hard work and persistence are essential for overcoming challenges and achieving long-term success.
Practical tips: How to start a business
As mentioned earlier, the first step is to decide the purpose of your business: whether it is making a profit, earning a livelihood, changing the world, helping the needy, or improving the lives of your community. Once the purpose is clear, you should decide what type of business you want to start based on your situation, financial position, and available resources.
You could choose operational excellence by starting a low-value, high-turnover business with a fixed set of products or services that can be managed by low-skilled workers. Alternatively, you may enter a niche market with an innovative product if you have skilled individuals who can develop new solutions. Another option is customer intimacy, such as in healthcare or personal services, where empathy and strong customer relationships are essential.
Now that you understand the nature of the organisation you want to establish, the next step is to conduct market research. This can be done by focusing on three key areas:
Firstly, identify gaps in the market. For example, many people are comfortable using smartphones in their daily lives but do not yet live in smart homes, this presents an opportunity to develop smart home solutions.
Secondly, look for innovation opportunities. For instance, while solar installation is growing in places across Australia, traditional solar panels are heavy and require significant installation effort.
New technologies, such as solar-integrated glass windows, solar sliding doors, or solar roof paints, offer innovative alternatives. Solar batteries are going through innovations as well, key advances include AI-driven energy management to optimise grid interaction, faster-charging materials, and longer-lasting, lower-cost chemistries that reduce fire risk.
Thirdly, explore opportunities where demand exceeds supply. For example, there are long waiting times for trades such as building surveyors, as well as for health-related services like imaging scans or NDIS support workers. These gaps indicate strong demand and potential business opportunities.
Additionally, many small business owners are nearing retirement and are looking for exit strategies. This creates opportunities for new entrepreneurs to buy, partner in, or gradually take over existing businesses, which can benefit both parties.
It is also important to recognise that many businesses fail because they run out of resilience, often meaning they run out of cash before reaching profitability. One way to reduce this risk is to start with a group of like-minded individuals who have complementary skills.
For example, a small team of three to four youth (working from home, part-time after school) could cover areas such as product development or R&D, sales and marketing, operations and support, and financial management.
Finally, there is significant support available for new businesses.
The Australian Government provides assistance through programs such as Business.gov.au, Research and Innovation Network, Startup & Small Business Support, Advisory and Growth (AusIndustry), Export and Innovation (Austrade), Employment and Skills (Workforce Australia).
These services offer guidance, resources, and even free tailored advice to help new businesses get started successfully.
Comments