Start a profitable business – step by step instructions
To start a profitable business in modern conditions, you need to know some important points. The bottom line is that times have changed and now business starts differently than it did before. In the old days, it all started with the construction of a factory, if it was about production, or from the construction of retail space, if it was about trade.
It was right to start a business like this in the old days, because there was a widespread shortage of goods and services. You build a factory, you produce anything, and it sells well. Or you build a shopping center, you bring goods into it and they go like hot cakes. Now, to start a profitable business, you need to act in a completely different way.
The inertia of the past remains. Now many people continue to apply the outdated approach – first they open a company or build a factory, they start producing something, but very often things don’t go well and the product is not sold. At present, this approach does not work, because so many capacities have been set up that it is possible to produce more than sell, and several times more.
Start a profitable business in a new environment
In the modern world, consumers are in short supply, no one has enough of them. If so, it means that at present it is necessary to start a business with the production of consumers. If you know how to do this, then it makes sense to open a business. If you don’t know how to do it, then either you need to learn how to create consumers, or you can come up with another occupation for yourself.
It is necessary to realize one simple fact – now the answer to the question of how to start a profitable business does not sound like it was 10-20 years ago. These are the realities of the modern world and you need to adapt to them if you want to make money. First of all, it is necessary to radically rearrange all business processes, because a different business algorithm is now used. It looks something like this:
- choice of market space
- study of the "population" of the market space
- creating a product sample
- creating needs
- creating consumers
- creation of capacities for the production of goods
- creation of a distribution network
- product release and distribution
How to start a profitable business
To start a profitable business, first of all, you need to find a promising market space. Yes, it is the market space, i.e. a certain territory where there are potential consumers of your products, because the market is not yet discussed, because the market is a set of consumers that we do not yet have and we have yet to create them.
After the market space is chosen, it is necessary to study its "population"
The choice of market space can be carried out according to different criteria. For example, it could be the distance from the place where we plan to produce the product to the place where it will be sold. Or it can be a space where potential consumers have a certain level of income, in general, any convenient variable can be taken as a criterion.
After the market space is chosen, it is necessary to study its "population". It is very important to carefully study the "population" of the market space, i.e. potential consumers. If you ignore its characteristics, then you can pay a very cool price. Having information about potential consumers, you can create a product that suits them the most.
How to start a profitable business
It is possible, but rather difficult, to explain on the fingers that we have some kind of superfood product. It is much more effective to have a model and use it to seduce those whom we see as consumers. The trick is that it doesn’t always have to be some kind of ready-made material sample, very often it is enough to build a virtual sample and promote it.
Creating a virtual product is much cheaper than a real one
For example, if we are going to produce mobile phones, we can create a virtual device, endowing it with different characteristics, and start promoting it in this form. Creating a virtual product is much cheaper than a real one, which is why many companies first create a virtual sample of the future product and work with it.
After there is at least a virtual sample, the need for a product or service must be created among the population of the market space. As a rule, any potential consumer initially cares little about our products. He has his own rhythm of life, his own habits and established needs. He does not pay attention to goods that go beyond them.
The right way to start a profitable business
If you offer a person a product that he does not need, he is likely to hold it in his hands with great curiosity. He will show with all his appearance that he is interested and we will begin to think that he wants to buy it. However, in 99% of cases, a potential customer will turn, turn and return the product. In a couple of minutes, he will generally forget that he saw him and hardly ever remember him.
Creating a need is the introduction of an idea into the consumer
What we need is for the potential consumer to become real. For this reason, the first thing we need to do is create a need. Creating a need is the introduction into the consumer of an idea that he can realize only with the help of our product. Moreover, it is necessary to introduce the idea creatively so that this process causes a maximum of emotions in it.
Emotions, preferably positive ones, are necessary in order for the consumer to let the idea into himself, which will cause a state of need in him. However, the existence of a need does not guarantee that a potential consumer will purchase our goods. In order for this to happen, it is necessary that he has formed a need for our product.
Start a profitable business by creating a market
The need for a product is formed after a person is pumped with an idea introduced into it and becomes a consumer. As a result, the idea begins to motivate him from within to implement it. In order to realize the idea, you need a product, which causes demand for it. At the same time, a person thinks that he needs the product, and not in order to realize the idea embedded in it.
Creating customers is key to starting a profitable business
Thinking that he needs the product personally, the consumer does everything possible and impossible to get a product that is able to realize the idea. He goes to work to earn money and subsequently buy the goods he needs, as he thinks. Sometimes a consumer can even take out a loan in order to implement an idea embedded in him.
Creating customers is the key to starting a profitable business. You can create a profitable business only if you know how to create customers. When you can’t create your own consumers, you have to hunt for consumers that others have created. Hunting for consumers is very dangerous and does not give a stable result.
Starting a profitable business is easy
After the consumers have been created and there is a sample of the product, you can safely begin to create capacities for its replication. At the same time, taking into account the fact that, as a rule, the life cycle of a product in the modern world is very short, it makes no sense to build any capital structures. It is enough to build simple structures, such as hangars, and place the equipment we need in them.
This will allow you to start a profitable business with minimal costs.
Moreover, it also very often does not make sense to purchase the equipment itself. It is often much more efficient to lease it. This will allow you to start a profitable business with minimal costs, and after the market is saturated and the cream is skimmed off, you can leave it very quickly and at low cost. Of course, you can stay if you have enough minimum wages.
If there is all of the above, but there are no distribution networks, then it is very difficult to sell the goods. For this reason, it is very important to set up a distribution network in advance. This may be your own network, but it may also be a network in which retail and wholesale points do not actually belong to you, but are ready for cooperation. In any case, you should make sure that the network is in advance.
Start a profitable business from scratch
As you can see, the release of goods is the last stage of modern business processes. Only when the previous stages have been completed, it is possible to proceed to the direct release of goods and its subsequent distribution. If at the previous stages we did everything correctly, then very quickly we will be able to achieve sales and profit targets. Your own brand will also help with this. She should definitely get it.
… an algorithm showing how to start a profitable business in modern conditions is not quite familiar…
It is clear that the presented algorithm, which shows how to start a profitable business in modern conditions, is not quite familiar, but it corresponds to reality. Of course, you can work the old fashioned way, create some kind of product and try to enter an already established market with it. But there will be many problems. Among these, the most significant are the very strong level of competition and low profit margins.