Master the Art of Business
A world-class business education in a single volume. Learn the universal principles behind every successful business, then use these ideas to make more money, get more done, and have more fun in your life and work.
What Is A 'Transaction'?
A Transaction is an exchange of value between two or more parties. Sales are the only point where resources flow into the business, so Transactions are critical.
You can only transact with things that are Economically Valuable.
The goal is to make the first profitable Transaction as quickly as possible, because that's when you transition from a project to a business.
Josh Kaufman Explains 'Transactions'
A Transaction is an exchange of value between two or more parties. If I have something you want and you have something I want, we'd both be better off if we agreed to trade.
The Transaction is the defining moment of every business. Sales are the only point in the business cycle where resources flow into the business, which makes completing Transactions critically important. Businesses survive by bringing in more money than they spend, and there's no way to do that without completing transactions.
You can only Transact with things that are Economically Valuable. If you don't have anything your prospective customers want, they won't buy from you. This may seem obvious, but it's amazing how many prospective businesspeople enter the market without something the market wants.
That's why developing and testing a Minimum Viable Offer is so important: it's the best way to determine whether or not you've created something valuable enough to sell before you invest your life savings.
When you're starting a new business, the object is to get to the point where you make your first profitable transaction as quickly as you possibly can, because that's the point where you transition from being a project to being a business.
Questions About 'Transactions'
- How many transactions are you completing each day?
- Are you offering anything that's not economically valuable?
"There is only one boss: the customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else."
Sam Walton, founder of Wal-Mart
Sales
https://personalmba.com/transaction/
Master the Art of Business
A world-class business education in a single volume. Learn the universal principles behind every successful business, then use these ideas to make more money, get more done, and have more fun in your life and work.
About Josh Kaufman
Josh Kaufman is an acclaimed business, learning, and skill acquisition expert. He is the author of two international bestsellers: The Personal MBA and The First 20 Hours. Josh's research and writing have helped millions of people worldwide learn the fundamentals of modern business.
More about Josh Kaufman →