The disciplines of mathematics taught us ‘first principles’.

 

Like first principles, statements of business premises provide a grounded starting point for business planning.

 

Business Premises Statements = statements of perceived truths…the major facts, as we see them, about the marketplace environment we are choosing to work in.

 

Before setting annual goals, we need to make clear statements of our business premises.

 

Business Premises statements describe only our most-important views about our chosen market niche.

 

5 statements, one for each of 5 Business Premises works well.

 

Business Premises statements must be more than descriptions of our business environment. They must explain our perception of the reasons our business makes sense.

 

If you practice Jim Collins’ Hedgehog Concept* then your business premises statements describe why your Hedgehog makes sense. If you practice SWOT analyses then your business premises statements show why your strengths are strengths, why your weaknesses are weaknesses, etc.

 

If you are starting a new business venture then your business premises statements must provide logic supporting your entrepreneurship.

 

If you are working to bring about major change at your business then your business premises statements must support the need for such change.

 

Regardless, do not rely solely on your own perceptions or those of your people. Before you finalize statements of your business premises have them reviewed by people capable of providing sound opinions about big-picture items…and only seek help from people who you know possess that big-picture capability.

 

 

*Link to a blog about Jim Collins’ Hedgehog Concept.