Running a business successfully is like following the perfect recipe—every ingredient needs to work together just right. For a business, this means its key parts must flow smoothly and support each other, like pieces of a puzzle that fit together. Even though every business is different, depending on its goals or industry, there are key functions that every company depends on to grow and thrive.
Why does this matter? Well, studies show that many businesses struggle because they don’t manage their core functions properly. For example, almost 20% of businesses shut down in their first year, often due to poor planning or mismanagement. Understanding these essential parts can help avoid these challenges.
If you’re thinking about starting or growing your own business, knowing these key functions can be a game-changer. But what are they?
What is a Business Function?
A business function is a key part of any company that helps it run smoothly and achieve its goals. These functions work together like pieces of a puzzle, keeping the business moving forward and growing stronger every day. No matter the size of the company, these functions are essential.
Here’s a breakdown of the six main business functions, their roles, and why they matter:
1. Product
This function is all about creating and improving the product or service the business offers. It focuses on solving customer problems and delivering value through the product. For example:
- Doing customer research to find out what they want or need.
- Planning new features and updates for the product.
- Testing products to fix issues and collect feedback.
- Checking how satisfied customers are using surveys or metrics like Net Promoter Score (NPS).
- Using tools to track how customers use the product and figure out where to make improvements.
Without a great product, there’s nothing for the business to sell or deliver. A strong product keeps customers happy and builds trust.
2. Marketing
Marketing tells people about the business and its product. It’s about making people aware, interested, and excited to try what you offer. Common activities include:
- Running ads on social media or search engines to attract new customers.
- Creating helpful content like videos, blogs, or social posts.
- Making sure the website is easy to find by improving SEO (search engine optimization).
- Sending emails to connect with potential or existing customers.
- Checking what’s working by using tools to track data and improve campaigns.
Marketing brings customers to the business. It spreads awareness and gets people interested in your product or service.
3. Sales
Sales take the interest marketing generates and turns it into paying customers. The sales team builds trust, answers questions, and makes sure deals are closed. Key activities include:
- Finding and reaching out to potential customers (called leads).
- Showing customers how the product helps through demos or one-on-one calls.
- Working out deals, prices, and other terms with buyers.
- Following up with potential customers who may not have decided yet.
- Keeping track of goals using sales tools and tracking numbers like conversion rates.
Sales bring in money, which keeps the business running. They also help build long-term relationships with customers by solving their problems.
4. Customer Success
This function focuses on making customers happy once they’ve bought the product. The goal is to keep them satisfied and using the product for a long time. Common tasks include:
- Helping new customers get started with guides, videos, or walkthroughs.
- Checking in with customers to make sure they’re getting value from the product.
- Fixing any problems quickly using chat or support tools.
- Offering new features or upgrades to help them get even more out of the product.
- Building loyalty by creating strong relationships with regular updates or support.
Happy customers stick with the business, recommend it to friends, and help it grow over time.
5. Operations
Operations make sure the business runs smoothly and efficiently. This function focuses on getting things done in an organized way. Key activities include:
- Making sure supplies or needed resources are available and delivered on time.
- Keeping everyone on track with deadlines and priorities.
- Finding ways to improve work processes to save time or money.
- Solving problems like late deliveries or supply chain issues quickly.
- Using tools to help teams work better together and stay organized.
Operations ensure everything happens the way it should. Without this, the business won’t meet customer needs on time or with quality.
6. Finance
Finance is about handling the money—keeping track of what comes in, what goes out, and making sure the business uses its money wisely. Typical activities include:
- Keeping track of income and expenses with financial reports.
- Managing cash flow to make sure the business can pay its bills.
- Creating budgets for things like product development or marketing.
- Making sure employees are paid properly and on time.
- Filing taxes and following financial rules to avoid penalties.
Finance keeps the business financially healthy. It helps avoid overspending and plans for future expenses or investments.
What is the End Goal of a Business?
The main goal of any business is to create and deliver value. This value could come from products or services that solve problems, satisfy needs, or improve people’s lives. While making a profit is important, businesses also aim to make a positive impact on their customers, employees, and communities.
The six main business functions—Product, Marketing, Sales, Customer Success, Operations, and Finance—are all designed to work together to achieve this. Here’s how each function contributes to the goal:
- Product ensures the business creates something that solves a problem or helps customers in a meaningful way. It’s the reason customers turn to the business in the first place.
- Marketing connects the product to the people who need it. It lets potential customers know about the product and builds their trust.
- Sales turns customer interest into action by building relationships and answering questions, helping people feel confident in buying the product.
- Customer Success supports customers after they’ve made a purchase. It ensures they get the most out of the product, which keeps them happy and loyal.
- Operations keeps everything running smoothly, so the business can deliver on its promises without delays or issues.
- Finance provides the money and guidance to keep all these functions working together and make sure the business keeps growing in a healthy way.
How This Helps the Business
When all these functions work well together, the business grows stronger. It gains loyal customers, earns more money, and becomes more prepared for future challenges. This allows the business to expand, offer new products, and help more people.
Building a Better Future Through Business
The success of a business doesn’t just benefit the company—it impacts the broader community. Successful businesses create jobs, support the economy, and pay taxes that fund important public services like schools and hospitals. They also have the ability to solve big problems, like improving the environment or creating new technologies that better people’s lives.
The main reason a business operates isn’t just to make money—it’s to offer real value and make a difference. When businesses focus on helping their customers and communities, they become stronger and build a positive future for everyone involved.