It is often said that a “business environment” must be favorable for understanding business to thrive in an area. For a CEO, however, it is not the environment in general that is key to growth. It’s the environment specifics that are crucial for optimal growth.
For maximum growth, there are at least seven elements to a better understanding business of the climate.
Logistics – How easily can customers, suppliers, and employees access a market? Is the location able to support contingencies
Infrastructure – How is the infrastructure supporting it (air, rail, and port) performing? Are local utilities reliable?
Talent – What is the talent pool? Is the talent available in your area qualified? What are the costs of talent in comparison to other Business Casual Sweater areas? Are there enough amenities and quality in the area to attract talent from elsewhere?
Competitive Landscape – How mature and stable is the local market? How strong is the competition?
Regulatory – How do policies affect employment, trade, permits, etc. Is there any current restrictions that could be a significant hindrance to the business? Do you anticipate future restrictions?
Cost of doing business – What are the costs of starting capital, licensing and registrations, lost work (downtime), taxation or credit access costs, trade expenses, etc. What are the costs of doing business?
Operational Risk – Is there stability in the geopolitical environment? Is the region susceptible to natural disasters Are there more opportunities for theft or corruption?
The business environment today is stronger than ever before in many markets and areas. To maximize an organization’s success, a CEO must have a thorough understanding of each market.
Understanding business the elements of a business climate is just the beginning
For overall success in a wider business environment, it is important to understand the key elements mentioned above.
But it’s much more than understanding these elements. A CEO must understand the business climate and deploy and maintain resources.