Making your business profitable
Making your business profitable
Have you ever thought about how to make money? I’m sure you have. Maybe when you were a kid and you have asked your parents how can I earn money and they have told you to do some chores, which has perhaps gotten you some weekly allowance. As a teenager you might have gotten some monthly allowance and maybe started working part time in your first job. All this has brought you a little pocket money, but as you get older your expenses get bigger and you need more money to make it from month to another. Not everyone but majority of people starts having a dreams of making enough money to live stress free life. How can you make this kind of money?
Often you hear people saying start a business. Starting business and instead of working for someone you work for yourself. The definition of business is “commercial activity”. In a nutshell you buy or make a product and sell it with a profit. But there is always risks in doing business.
First you need an idea. Only way to test if your idea is good and make your business profitable is taking the risk and testing the product. Best way to test it is creating a samples and having possible customers to try them. Ask them about what could be done better and what is already good. Even if the samples come back positive it does not always mean that the idea is profitable. Usually there is a lot of competition in the market. In order to beat the opponents, your product must be somehow better than theirs. Every business owner daydreams what it would be like if you had no competition at all. If you can find your own niche, and brand it well enough, you come much closer to achieving profitable business.
When building a brand and trying to find the right customers advertising and marketing comes in to a place. It takes a lot of time and money, but is a field that determines your successful. Targeting is one of the main focuses that you should think about in advertising. Find and solve the customers pain point. Better targeting means finding the right audience for your product. In that way the customer base is smaller, but it makes advertising more profitable. There is no point of trying to sell car parts or repair to a person with no car. You get the idea. In todays world that we live in, social media is a great tool for marketing. You can pay social media influencers to make an ad for your product on their page. For example if your niche is a men’s clothes. You should contact influencers who have a page focused on their style and clothing. In that way every person who follows them is in some way interested in your niche. Using influencers for advertising is a really good way to find customers. Just make sure to check that the followers that your influencer has are real and genuine. A lot of accounts can be fake in a way that they have bought their followers (bots) in order to make money.
After finding your customers and targeting them well enough you need to set a competitive pricing. One of the easiest ways to beat your competition is to offer more affordable pricing. How can you make your product pop from the other ones? Usually the cheapest price wins but this always not the case. Since the market is segmented by lower, middle and upper-tiered customers, you need to figure out which group is your audience. Sell more for a small price or sell less for a big price. For example in todays clothing scene having a unique outfit is a flex. Brands are pricing their products way high and selling just a limited batch to make the clothes unique and exclusive.
It is not always about making ads to draw new customers to your business. That is why it’s very important to keep those who are already buying your product satisfied with it. The best way for this is to provide great and memorable customer service. Not only it makes the customer satisfied and is a good for your brand image, it makes you different from your competitor. This will keep you your old customers but also draw more new ones.
If you follow all these steps stated above you should have the keys it takes for a profitable business. Now you don’t need nothing else than some bravery and will power to start making money.