Useful Tips

How to increase profits and make a business successful

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From the side it may seem that to be the owner of a business - this automatically means wealth and prosperity. Outwardly, everything can look really very good - a beautiful sign, an expensive office, and so on. But in practice it often happens that behind the external gloss there are big financial problems that can lead to the closure of the business in the next three years or even a year.

In this sense, you should think about the profitability of a business before starting it. In general, profit is all income minus expenses. According to kirulanov.com, the most profitable business is the one in which expenses are nullified, but there is great potential for income. For example, opening your own store will inevitably require the cost of renting a room, a warehouse, and so on. It’s much cheaper to open an online store, but here there is a problem of promotion. And in some cases, the VKontakte public may come up, which will simply spin up and the cost of creating such a sales channel will be practically zero.

So, today I will tell you some tips that will help you build a profitable business.

DO NOT TAKE LOANS

The vast majority of successful entrepreneurs are advised not to take loans for business. I agree with them. Loans are easy money, but then they are too expensive. After all, you need not only to be able to earn them (which in business - no one can guarantee), but also to give back also interest, which is now unreasonably high. Business is a risky event in itself. And loans do not really help here.

Of course, there are cases when people took a loan to start a business and opened it, and then worked long and successfully. But in most cases, a loan is not appropriate. After all, it’s not enough to take money. We also need to learn how to effectively manage them. And credit funds are too expensive money to learn from them.

Practice shows that almost any budget can be literally merged in a matter of seconds. No matter how many millions of rubles you have in your accounts, there will always be performers who enthusiastically capitalize them. So before each waste it is worth considering whether to order this service or buy this equipment. It's not about greed. It's about efficiency. After all, all your costs will ultimately be reflected in the cost. And the client is now not ready to pay for someone else's inefficiency. You need to get used to working efficiently right away.

DO NOT LAUNCH TWO PROJECTS IMMEDIATELY

It is a very bad idea to run two or three projects in parallel. Practice shows that it is much better to focus efforts on only one project, bring it to mind and only then - when the first project is stable and profitable, you can think about starting a second project. And then, you need to think three times whether it is worth running it. After all, an additional project will distract not only your finances, but also time and will cost you nerves. Weigh the pros and cons, but be a skeptic. There may not be enough strength for anything. At the same time, if you already decided to harness in two projects, then it is better to go to the end. If you drop the project halfway, then all the money invested in it can simply be reset, because not always business projects make a profit right away. Think with your own head and keep in mind that launching several projects at once - requires extra effort.

BE ABLE TO SPEAK “NO”

You need to be able to say no to unwanted expenses, reckless business ideas of a partner, dubious offers. Moreover, you need to have to refuse and unwanted customers. And all because a small business does not have sufficient resources to cling to everything. Being the best in a narrow niche is preferable to being mediocre in a wide range (of goods or services).

MONITOR INCOME AND EXPENDITURE

As soon as you start a new business project, you need to start a thorough account of all income and expenses. It can be a table in Excel or some other tool. In any case, when you have all the income and expenses in front of your eyes in the table, it cleans your brain and you can immediately see where you spent the extra money, and where you have a drawdown in income and for what reasons.

You need to be able to choose the appropriate legal form, tax system and monitor innovations in the legislation. Practice shows that there are surprises. In addition, the legislation has many benefits and other subtleties that are worth it to get acquainted with them. For example, there is such a thing as preferential rates for insurance premiums for employees.

Usually, only during a crisis do enterprises really begin to think about efficiency. They begin to reduce staff and save on everything in a row. Including people are fired. There is advice - not to wait for the crisis, but to work in austerity mode immediately. This will save huge amounts for future development. But here you need to be able to think critically - on which you can save painlessly, and what - it’s better not to touch.

Business and Economics

Income, money, break-even point - these are all economic categories. What does a novice entrepreneur know about economics, market categories, trends, laws of management and marketing? To organize a commercial project, a diploma of a higher educational institution is not required, but you will need to master the minimum theoretical concepts: market, business plan, income, loss, liquidity, competitive advantage.

Whatever idea the future entrepreneur visits, he should remember the main thing: business must be profitable. This axiom refers to the economic nature of entrepreneurship. The second recipe for success is: "Think like an economist."

Profit is not only a pleasant bonus to your efforts. This is an economic category that performs several functions:

  • shows that the entrepreneur is moving in the right direction,
  • stimulates the owner and employees, makes you work harder,
  • forms resources for further development.

The main task is to learn how to spend, extract income from each invested ruble. This will be required for full work and development. In the first months, a business can bring losses, but there necessarily comes a moment when unprofitable activity is replaced by income. This day is called the breakeven point.

Important! Profit like blood for blood vessels. She gives life to the enterprise. There will be no profit - the business will cease to exist.

Entrepreneurship and sporting character

Business and sport are similar. The goal of the sports competition is to get around the rivals and take the main prize. This is the goal of the entrepreneur: come up with an interesting idea and be the first to occupy a niche.

There is a nuance: a few manage to come up with a good idea "from scratch". Good ideas come knowledgeable and experienced. Imagine that a newcomer, never skiing, came to biathlon and won the race. It's impossible. Surely, before taking the prize, he trained for 2-3 years.

To get to the top, the businessman will also have to "train" daily. Make mistakes and fix them. To study the theoretical aspects of doing business and put them into practice. Distribute resources correctly. Test a niche. Try yourself in different types of activities. Napoleon Hill said: wealth does not come by chance, and luck is a response to persistent desire. Being persistent, not stopping halfway is another recipe for success.

Important! Errors and failures overtake the most intelligent and experienced. Commercial activity is a risk. It didn’t work in one sphere, we try in another, one strategy did not work, we invent another. The viability of a commercial project lies in constant movement and development.

Martial art and commerce

In his book, Think Like a Billionaire, Donald Trump compares the behavior of a businessman and a commander in chief. It is necessary to draw up a detailed plan for yourself and your army, and then fulfill it. In order for the activity to generate income, they study the art of strategic planning: for a year, for a month, for every day. The life of a business person is scheduled in minutes - he knows exactly what he will do tomorrow, in a week, in six months. Having learned how to plan, set priorities correctly and achieve results, an entrepreneur will discover another recipe for profitable activities.

Important tip! A commercial project is a creative thing, but only competent planning will bring success.

State assistance

A commercial project is more likely to start from scratch and not go bankrupt if it works under the tutelage of the state. Not everyone has access to the Skolkovo center and profitable government orders, but at least it’s wise to use the tools that are available to everyone. State support for small enterprises is carried out in several areas:

  • subsidy for opening IP from the employment center,
  • subsidies and grants to start-up entrepreneurs,
  • compensation for lease payments and interest on the loan,
  • municipal property rental,
  • free educational programs.

In each region there are programs to support small businesses, each year billions of rubles are allocated from the budget for these purposes. Communicating with representatives of the local administration, participating in seminars and round tables together with representatives of the authorities, the businessman has a good chance to "light up", attract media attention, learn about new grants and the conditions for their provision. Of course, this should be done by those who work in the legal field, comply with the laws and pay taxes on time.

Important! A businessman uses any legal methods to increase income and increase profits. There is no reason to refuse state subsidies - there is a chance to get it.

Adaptation of foreign experience

Oleg Tinkov at one of the seminars said this: “Russia does not need innovation. We are so behind that you can make money just by copying other people's achievements. ” It is not necessary to trust this judgment 100%. But there is a rational grain in it. Good ideas hail from the USA, countries of Western and even Eastern Europe awaiting implementation on the Russian markets. Of course, you should correctly calculate your strength: take into account the specifics of local prices and the mentality of the consumer. But such large network enterprises as Zara, Subway, American jeans, feel great in Russia and bring owners a good income.

Take note! Tinkoff himself built the activities of Tinkoff Bank on Western technologies of remote work with clients. In 2016, a banking institution showed growth in a declining lending market and brought its owner an income that was incomparable with the numbers of competitors.

Copying is another recipe for business success. It should be creative, not like theft. You can use other people's ideas, but adapt for your experience, your customer, your region.

It is interesting! One of the varieties of "permitted copying" is called franchising. Becoming a franchisee of a promoted brand is a good idea for a novice entrepreneur. Opening a franchise company is less risky - more likely to start correctly from scratch is successful and set the pace for your development.

What is important to know before starting a business from scratch

This is the most important point of this article. If you do not read it, then reading is pointless. So, I will say briefly what is important to know, and below I will try to dwell in more detail.

  1. In business, as in sports! It is also important your inner attitude to this! Your psychological attitude. If you are mentally prepared for the upcoming difficulties, ups and downs, then your business will last a long time. If you do not have money, but you decide to start your own business, then be prepared for a long journey. With money, everything is simpler, but without them ... You understand.
  2. What is your business goal? You must clearly understand why you want to do business. “Because a friend is engaged, and I am worse” or you really see a promising and unique business model, the ways of its implementation, usefulness for others, the reality of profit.
  3. We calculate the risks.
    - Never start a business with borrowed money if you are not sure that you will succeed and you will pay off your debts.
    - Designate for yourself that point beyond which you will never go beyond any circumstances.
  4. Start small. Not a single businessman started right away with the global construction of the corporation. They all started with something small, many even without money. I think you all know these success stories. There are a large number of such people in the business environment. Never cling to large-scale business ideas that require large investments initially. Adequately evaluate your capabilities. Getting screwed up at the start is easy. And there are a lot of such people, just few of them know. Personally, I know a lot of such failed examples.
  5. Choose the niche that you understand! Do not start your first business from scratch in an area in which you do not know anything. Not everyone is given to be restaurateurs or fashion designers. But maybe you are going to open a business with a companion who understands what you are not good at. Then you can take a chance. But then again, agree on everything “ashore”.
  6. Confidently go to the goal! If you doubt or are afraid of something, then it is better not to start your own business at all. You must be confident in your abilities and that you will succeed, as well as be prepared if the idea burns out. It is very important to enjoy what you are doing and then petty troubles in the business will be easier to bear.
  7. Quality is important in business! In goods or services - it doesn’t matter! Never start a business if your quality offer is worse than the existing ones on the market. Of course, by great chance, you can get the first customers, but thereby ruin your reputation in the bud and quickly close.
  8. Not everyone is destined to be a businessman! In Russia, only 5-10% of entrepreneurs, and the rest are hired workers and the unemployed. Such is life, not everyone is given the opportunity to be an entrepreneur, an astronaut, an athlete, a scientist, etc. You must understand this. I don’t remember from whom I heard these statistics, it seems to be from Oleg Tinkov (if you made a mistake in the numbers, correct me).

Reread these points once more, and maybe several times, because without this you can’t do anything at all. Any businessman or entrepreneur will agree with me on this. Maybe with adjustments based on practice, but generally agree!

Start with a business on services

  1. You know how to do something better than others,
  2. You start to provide your services and earn the first money,
  3. Expand your business or open another one with the money you earned.

In 90% of cases, a business without money can only be started with services! This is logical. You earn on your own. It rarely happens with goods, because in most cases goods need to be purchased, and these are investments.

Starting a business from scratch on goods, acting as an intermediary

  1. You know how to sell
  2. Do you know where to buy cheaper
  3. Find a customer for a higher price and leave the difference to yourself,
  4. With the money you earned, you can already afford to purchase goods, if necessary.

With goods without investments you can only start as an intermediary and only if you know how to sell. Because without sales skills, you cannot find a customer. It rarely turns out to find a hot-selling product much cheaper than that of competitors and so that no one else knows about it. Therefore, always prepare for competition. Next, I will tell you in more detail how to open a business without investment in reselling goods.

Start info business

  1. You have unique knowledge that can be useful to many (it’s better if you have already been contacted for your knowledge),
  2. You actively declare your knowledge and sell it to others.

Only knowledge should be unique and useful, not invented. Suddenly, you lost weight according to the method you developed, or cured something using your method, or you know foreign languages, etc. This can be taught and earned.

Become a partner to your employer

  1. You work in a company and have the knowledge or skills that could give the company significant growth, allow you to save on something, etc.,
  2. You offer your service to the director (for the test you can for free),
  3. If the result is positive, then you can agree on a partnership.

This scheme is rarely talked about, but I have many examples when a small business started like this. Maybe you know how to replace one ingredient with another in production and thereby reduce the cost of the finished product without losing quality. Then you can deliver this ingredient to your director or share technology for a percentage of the money saved.

Or, for example, you know how to increase sales of goods or services of the company in which you work with other types of advertising / promotion. Then you can offer the director to buy clients from you or just pay you a percentage of the clients you attracted. This option resulted from personal experience.

The conclusion from these 4 schemes

You should have noticed that all these 4 schemes have one thing in common - you should be able to do something better than others or at least be good! Если вы не знаете, как продать ваш продукт или услугу, если ваш продукт или услуга не так хороши, то вы 100% прогорите рано или поздно! Бизнесу вашему придет трындец! Это неоспоримый факт!

В бизнесе прибыль идет только от продажи товаров, услуг и т.д. If you do not know how to present and sell your product, then it is unlikely that someone will buy it from you. If your product is worse in quality than that of a competitor, then sooner or later all of this will be understood and you will be left without customers. It does not make sense to do worse than others.

28 business ideas from scratch without investing money

The essence of the idea is as follows: you, having free access to the Internet and several hours of time, find people who need to translate, rewrite or copyright the text, design a web page, develop its design, etc. Agree on all terms of cooperation and complete the order.

Relevance:

Every day new sites are created and old sites are updated. Most often, their owners only generate ideas, and they trust the implementation to freelancers. Such people fill the resources with new information, make the site user-friendly, give it an attractive look. There are always a lot of job offers, so the work of a copywriter, rewriter, designer, programmer is very much in demand. Everyone can try their hand at such a business.

Implementation of the idea:

In order to earn in this way, you need to find a job on the Internet or the customer. If you plan to engage in copywriting, rewriting or text translation, then first you will have to register on the copywriters exchange. If you know how to work with graphic programs or are familiar with the basics of programming, then you can try to find customers on sites where there is a section called “Work at home”.

Earnings depend on the complexity of the orders.

Useful articles:

Business Idea No. 13 - Dropshipping

The essence of the idea is as follows: you find wholesale suppliers of any products (clothes, things for children, bedding, etc.), advertise their goods, find a buyer, after payment you accept his order and place an order with the supplier. The supplier from the warehouse sends the paid goods directly to the buyer. In this chain, you are the intermediary between the seller and the buyer.

Relevance:

Very often, people who spend a lot of time sitting on the Internet prefer online shopping. It is profitable, simple and fast. Prices for goods purchased in this way are several times lower than in ordinary stores. In this case, you do not need to look for a product of interest traveling around the city. For dropshipping without investment, you can organize a business with China on the resale of goods. Today, almost all products come from China, you only need to find suppliers with favorable conditions and quality products.

Implementation of the idea:

First you need to find one or more reliable suppliers. After that, you need to create your website or group in the social. networks where product catalogs will be placed. It remains to find customers who want to order your favorite thing from you. The easiest way to find customers in the social. networks without attachments - this is sending requests to people who are subscribed to similar groups.

It is very difficult to name the approximate amount of income. It all depends on whether customers want to make an advance payment for the purchase. This business is based on the trust of each side, which prevents it from developing. If you are ready to responsibly approach this business, it is better to connect your personality with this and then trust in you will increase, and customers will only be attracted to you in the group.

No need to come up with a fake character Vasya Pupkin, who offers to buy something from him, Strelnikova Angelina, born in 1980, graduated from some university, who uploads unique photos of the selling product and talks about its useful properties, inspires more confidence checked on myself.

Business Idea No. 14 - Organization of joint purchases

The essence of the idea is as follows: you register on a special site, find wholesale suppliers of products and customers who are interested in this product, collect a minimum order, pay for it. You pack and receive the products received by mail from the supplier and send them to customers. Your profit is an organizational fee of 15% of each unit of goods.

Relevance:

Current prices for all things, shoes, underwear, etc. can not be called low and affordable. Therefore, people are looking for where you can make the most profitable purchase. It is for this that there are sites and groups in the social. joint shopping networks. By cooperating, people buy things at wholesale prices.

Implementation of the idea:

People with organizational skills should engage in joint purchases. If you are confident in yourself, then you can register on specialized sites, look for wholesale suppliers and customers, advertise your resource and collect orders.

Joint purchases are at the peak of popularity, so if you can find the right number of customers, then you can count on a significant profit, which can reach 20-25 thousand rubles. per month.

Business Idea No. 15 - Real Estate Agent

The essence of the idea is as follows: You are the intermediary between the seller of the property and the buyer. For the fact that you help to sell or buy square meters, the client pay a certain percentage of the transaction. The main role in such a business is played by the organizational skills of a realtor.

Business psychology

Psychology will help to understand the motivation of the client and your own, to properly inspire employees, to stimulate them to perform creative and routine tasks. She will tell you how to agree with a partner, get ahead of competitors, make employees want to work in good faith. Without knowledge of the basics of psychology, it is difficult to start a business, because the art of sales and communication is built on knowledge of the nuances of human behavior.

You should know! In terms of competitiveness, soft skills technologies are in demand today. They include the ability to persuade, find an approach to complex clients, negotiate correctly, and work in a team. These skills allow the businessman to work successfully, to ensure the development of his project.

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