I have always been pondering about how to convey the essence of a business. There are many aspects to a business, and it seems in business schools we tend to either say everything is important, or say a particular area is the most important. To me, that is the wrong idea. My sense is that there are a few key areas, without any of which a business cannot be successful in the long run.
My prayer was answered when I read the book “Build a Business Not a Job” by Finkel and Harkness. I slightly revised their wordings and came up with the acronym SOLAH (which sounds like SOLAR) —Sales and Marketing, Operations, Leadership, Accounting and Finance, and Human Resources (Team). They work together to create a stable base for growth. The strength of each pillar determines the overall stability and scalability of a business. Without a solid foundation in these key areas, businesses struggle to sustain momentum and risk collapsing under the pressure of expansion. Below, we explore each pillar in depth, using real-world examples from successful early-stage companies.
1. Sales and Marketing: Finding and Converting Customers
Sales and marketing are the lifeblood of any business. Without customers, a company cannot survive, let alone grow. This pillar involves defining the target market, identifying potential customers, and driving sales through various strategies.
In its early days, Airbnb faced the challenge of attracting hosts and guests to its platform. The founders implemented a creative marketing hack—integrating their listings into Craigslist to reach a larger audience. This strategic move helped Airbnb rapidly grow its user base and gain traction in the short-term rental market (TechCrunch).
2. Operations: Delivering on Promises
Operations ensure that a business fulfills the commitments made by the sales team. This includes product development, supply chain management, customer service, and all back-office functions that keep the company running smoothly.
If you look at all world-class companies, they are all super good in what they do, whether it is make things, or delivering services. In its early years, Amazon revolutionized e-commerce operations by prioritizing logistics and customer satisfaction. Its investment in fulfillment centers allowed for rapid shipping, setting the standard for online retail (Forbes).
3. Human Resources (Team): Building a Winning Workforce
A company is only as strong as its team. Human Resources is responsible for recruiting, training, and managing employees while ensuring compliance with labor laws. A strong HR pillar fosters a positive work culture and drives long-term success.
As an example, Google’s early focus on hiring top talent and fostering an innovative work environment set it apart. By implementing rigorous hiring practices and providing unparalleled employee perks, Google attracted and retained world-class engineers and marketers, leading to its dominance in search and advertising (Inc.).
4. Accounting and Finance: Managing Money Effectively
Finance is crucial for tracking revenue, managing expenses, and ensuring sustainable growth. Businesses must monitor cash flow, handle accounting, and make strategic financial decisions to remain solvent and competitive.
Shopify started as a small online store but became a billion-dollar e-commerce platform by effectively managing its finances. Early investments in scalable infrastructure and financial discipline allowed Shopify to grow rapidly without burning excessive capital (Bloomberg).
Many founders will also tell you that it is so important to control costs when your company grows. That is why almost there are so many great companies that are fundamentally and famously “frugal”: Amazon, Tesla, Walmart…
5. Leadership: Setting the Vision and Strategy
Leadership is the guiding force behind all other pillars. Great leaders define a clear vision, set strategic priorities, and ensure all departments work cohesively toward common goals.
Conclusion
The SOLAH framework—Sales and Marketing, Operations, Human Resources, Accounting and Finance, and Leadership—serves as the foundation for any successful business. Early-stage companies that build and strengthen these five pillars create a stable base for sustainable growth. By studying successful businesses like Airbnb, Amazon, Google, Shopify, and Tesla, entrepreneurs can learn how to develop each pillar effectively and position their ventures for long-term success.
By focusing on these five functional areas, businesses can withstand challenges, scale efficiently, and achieve lasting impact in their respective industries.
I am also happy that I finally have an answer to myself, an answer that I will remember myself.
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