Any business, from a startup that originated from a crafts hobby to a million-dollar business that’s been operating for decades, needs to be optimized for profitability to survive and thrive.
If you’ve already started your business or are just planning to start one, it’s ideal to follow a formula. We’ve compiled five focus areas that’ll help you build one that works for your commercial venture.
Everything starts with your purpose
Your purpose must align with your mission, your product and your business. This means that your business must fill a need or solve an existing customer problem.
The concept is called “Ikigai,” which is a Japanese term that roughly means “reason for being.” This is a theory that is mostly applied in life but can also be applied to business.
It’s said that the Japanese tend to live a naturally long life because they practice Ikigai. A practice that enables them to find the intersection that connects your passion, talents, what the world needs and what people are willing to pay for.
For example, if you’re starting a resin business that involves creating jewelry and centerpieces, make sure that the product is of higher quality than its competitors in the market but that it’s cost-effective for your operation.
It will serve you well if you’re clear about what your product does or what its purpose is right from the beginning.
Prioritize quality products
All successful and long-running businesses have one thing in common: they produce quality products at the right price. Consumers are now well-informed and very savvy about doing their due diligence. The internet allows buyers to thoroughly check the product’s quality as well as compare prices with competitors in the market.
About 81% of retail shoppers do online research before purchasing a product or service, which means you must find ways for your business to stand out.
Knowing the importance of creating quality products and offering them at the right price will separate your business from competitors. This includes making sure that the shipping is quick, the return policy is fair, and you offer the lowest price possible for the quality of the product you’re offering.
Master cash flow
As with all things business, mastering your finances is key to a healthy business operation. For startups, it’s important to hold onto your money as much as possible. Research on ways you can save money without cutting corners. Monitor where your money is going and spend it on things that will multiply your spending. In short, spend your money on areas that will generate revenue.
A strong marketing strategy
When it comes to keys to a successful business, marketing will always take center stage at one point or another. It bridges the gap between your customers and your product, in a way, marketing is your business. It maximizes the momentum of your sales department, and as the saying goes, no sales, no company.
Note that your marketing shouldn’t only focus on making a profit or increasing sales, but it should work on creating loyal customers and keeping them.
Slow and steady wins the race
You’re not required to know everything the moment your business goes live, even if your business takes off there will still be a ton of things you’ll need to learn. You will be more experienced, but learning never stops. This is why you don’t have to be compelled to win or make it big too quickly.
When it comes to business, it’s about longevity, it’s not how fast you’re going, it’s how long you can keep going. You can only ensure longevity if you have all the right pieces in place and if you have established strong fundamentals.
Master the Art of Selling
As an entrepreneur, remember that most commercial ventures will boil down to selling. Once you have everything in order, your attention should be on developing your own skills to network and sell.
It’s important to be passionate about the product and to understand your customers. But to be successful, you must know how to channel your passion and energy into sales. Develop your sales skills because it will be the most effective way to make your customers fall in love with your products and keep them coming back for more.