Almost everyone who has the determination and desire to act can open their own business. But getting a business to generate significant profits is a task of a different order of complexity.
Principles of running a profitable business
The concept of "profitable business" implies the presence of a net profit, which is several times higher than the level of the average wage in the country, that is, in fact, you should receive monthly amounts equivalent to those if you worked at 4-5 jobs at the same time. How can this be achieved? Here are some tips.
To create a truly high-margin business, make sure the niche you intend to work in is relevant. So, the sale of elite gold watches in a village with five thousand inhabitants is unlikely to bring you any benefit. In this matter, you will be helped, in particular, by the Yandex. Wordstat”, which displays the frequency of search queries per month by region.
Develop a detailed financial plan, set the cost of the product, and determine the selling price. Based on this, draw a conclusion what sales volumes for a period (say, a month) will allow you to stay afloat.
At first, give all your strength to the cause, perfectionism should become your philosophy. Remember that at the initial stage, you earn a reputation, and for an entrepreneur, this is the most important resource! Remember, one negative review will create more problems than ten positive ones will do.
Constantly expand your clientele and seek grateful reviews. There are many ways for this: a promoted and optimized site, which people get to by typing phrases related to the subject of your business into a search engine; promotion in social networks - promotion of groups for the relevant audience; contextual advertising, word of mouth. As you can see, there are many ways to expand your customer base, and nothing prevents you from inventing your own.
At the stage when you stop dealing with all matters personally, do not be afraid to delegate them. There are people smarter, more organized, experienced than you - let the hired workers work. Moving away from routine, you will be able to think and act strategically, for the future, and only this approach will allow you to create a truly profitable enterprise.
Newbie mistakes
Newcomers to any field, including entrepreneurship, have two characteristics: excessive ambition, neglect of small details, unwillingness to reckon with reality, or inability to face the truth. There are some of the most common mistakes that you should not make if you set out to create a profitable business.
Lack of financial plan and strict reporting
A successful entrepreneur at any time of the day or night can recite the projected monthly income, expense, estimated sales volume and many other financial issues by heart. The world of business is a world of numbers, and math should not be neglected.
Customer neglect
Flaws, mistakes and, moreover, "scam" are unforgivable! And for two reasons at once. Firstly, it negatively affects the reputation of the start-up company, and secondly, it creates a negative attitude in you personally towards the client, work and your entire business as a whole, which leads to a loss of motivation and, consequently, to the death of your business.
Diving into the routine
Think strategically, work for development, and let the employees do the turnover - you pay them for this. In other words, value your time as a leader - the captain of the ship should not wash the deck on his own, otherwise the ship may go off course in the meantime.
Follow the recommendations, do not make mistakes, and most importantly, love what you do - and your business will start to make a profit!
