Five Easy Steps To Manage Your Business To Profit
Are you a business owner, manager or entrepreneur? No doubt you want to make a profit since a business that does not generate a profit cannot exist for long. It will simply collapse.
Profit is the difference between revenue and cost, or Total Revenue – Total Cost = Profit.
How do you maximize profit, which is one of the primary objectives of any business?
The answer is: generate more sales and lower your cost, or maximize your sales volume and minimize your expenses. To make your business profitable, here’s the six easy steps.
1. Have A Business Mission. Your mission statement must answer the basic question: “What’s my business reason for existence? ”Why does my company exist?” This is the heart and soul of your organization and the platform from which you should make every decision — be it marketing, finance, product and services, customers service, etc.
2. Identify Your Market Niche. Know who are your target customers, those who are going to want and buy what you’re selling. The key is to find a niche, or a specific place in the market with its own select group of buyers with their own needs and wants, and serve that market well. If you can identify those quality consumers, you will have a much easier time serving them and make them your loyal customers.
3. Brand Your Business. What makes your business unique? Why should anyone do business with you as opposed to your numerous competitors? Consider how you make decisions when faced with a choice between similar products from different manufacturers. Each customer asks the same question when they consider buying from you. How do you stand out?
4. Think Big. Through planning, broaden and expand your possibilities, your market, your products and services base. Think Big. Your business will only grow as big as its environment allows. Think small and your business is likely to remain that way. Dare to dream and think large. Everything is possible if you believe it so and work for it.
5. Act boldly. Always take action. The business world belongs to the quick. Always work your business plan and targets, evaluate it according to results. In case of failure, make it as a feedback on how to get it right for the next month of implementation.
Working these six easy steps will make your business survive, grow, and generate a sustainable profit.