This is the primary part of a two-part series on growing your business. For more ways to extend your profits, read click here.
Your ability to think, analyze, and choose is the key determining factor of your profitability. to assist you to sharpen this ability, here are some key principles for business success that are relevant and important at every stage of your professional life. If ever you are not proud of the business results you're getting, revisit these key points.
1. the merchandise Must Satisfy an instantaneous Need
The first principle to think about in selecting any new product or service is to work out if it fills a real, existing need that customers have immediately. a replacement product or service must solve the matter of some kind for the customer or make the life or work of the customer better during a cost-effective way. you want to be very clear, from the start, about exactly what your product or service does to enhance the standard of the life or work of your customer.
2. Offer Good Quality at a Good Price
The second principle for business success with any product or service is that it must be of excellent quality at a good price. If it competes with other similar products or services, it must have what's called a singular Selling Proposition--one or more features or benefits that make it unique, different, and superior to any competitive product or service.
No product or service can succeed unless it's somehow unique and superior to the other product or service that competes with it. There's seldom any opportunity to create a business around a "me too" product--a product or service that's just an equivalent as all the others, where the sole difference is that it's you who happens to be selling it.
The safest business strategy is to start with an accepted product that already features a widespread market then find how to enhance upon it in how. Deliver it faster, make it better or of upper quality, or lower the worth of the merchandise or service in how . rather than trying to create a replacement business or industry, start with a product or service that folks are already using and find how to form it more desirable.
3. take care together with your Money
Successful companies use accurate bookkeeping and accounting systems. They put these systems in situ at the very beginning and punctiliously record penny they spend.
Even the most important multi-national companies--those that do billions of dollars in sales each year--tend to be very careful with their expenditures. They're constantly trying to find ways to chop costs while maintaining an equivalent level of quality. They specialize in frugality in the least times.
4. income is important
Especially with a little business, you want to hold onto your cash as a drowning man would hold on to a preserver. Cash is the lifeblood of the business. income may be a critical measure and determining factor of business success. All successful entrepreneurs install careful financial controls and monitor them a day. They carefully consider every expenditure. They take the time to research the utilization of each dollar. They work from detailed budgets and that they review them hebdomadally and each month.
the essential rule for running your business is "If it isn't revenue, it is the expense!"
5. Guard Your Cash Carefully
One key to business survival, concerning your operations, is "frugality, frugality, frugality." Once I worked for a person who had started with nothing and built an 800 million dollar business empire by the time he was 55. I used to be amazed to ascertain that he ate lunch at a little diner across the road from the office, and drove a second-hand car. He delighted in saving money.
Wal-Mart founder Sam Walton, when he was worth quite $25 billion, still drove his pick-up truck to and from work. This attitude of frugality from the highest permeated every aspect of Wal-Mart down and throughout every department.
6. Maximize Your Marketing
Perhaps one of the foremost important principles for business success is robust momentum within the sales division. this needs stress on marketing that permeates the whole organization. Everybody must believe selling and satisfying customers all day long.
What's the purpose of a business? Some people say that it's to "make a profit." But this is not correct. The true purpose of a business is to "create and keep a customer." Profits are the results of creating and keeping a sufficient number of consumers cost-effectively. All emphasis has got to get on creating and keeping customers.
7. Selling is that the Core Skill of a Successful Business
The keys to business success are simple. About the merchandise, the keys are to "Sell! Sell! Sell!
With only a few exceptions, all successful businesses begin with one person who's excited about the merchandise and who's excellent at selling it to others. He likes merchandise such a lot that he can hardly wait to speak to people about it.