Updated: Aug 31
This article talks about the powerful strategies that entrepreneurs can apply so as to help them achieve profit:
#1) Product: Business-owners should be very conscious of the products they are engaging with because the selection of wrong products can be a cause of worry. Following may be the points that entrepreneurs should look into before choosing the products:
They should have complete knowledge and expertise of the the product and the technology that they are dealing with.
The production volume and the sales volume of the product may be increased very easily.
Along with the product they should also have a thorough knowledge of the market and do PESTEL analysis. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal.
The product should help in maintaining high amount of cash liquidity.
The performance of the product should be optimal and be able to meet the expected performance.
If the entrepreneur wants to do more, he can work on the augmented product as well thereby ensuring that the customer becomes delighted rather than being just satisfied.
#2) Product Types: A lot of business-owners get stuck in this point. There is a conception that more types of products would lead to more revenue but, in the process they are not able to manage the the stock of these products.
To overcome this problem, we should identify the top selling products i.e. those products which contribute to around 80% of total sales. The real focus should not be in the products with higher percentage margin. Having higher margin may appear to be more profitable upfront but, if those high margin products do not fall in top selling products then, it is pragmatic to divert the energy to high selling products.
#3) Margin keeping: For increasing the margin following are the points which entrepreneur can follow:
Increase in volume and reduction in raw material cost
Reduction of wastage and rejections during production
Product prices should be affordable for the customer and profitable for you as the owner.
The faster you can sell the product and get the money, quicker can be the rotation of money thereby, managing the liquidity.
#4) End-to end solution and targeting rural areas: Entrepreneurs should scan the area of nearby places and if they are able to cut a lot of costs that their clients might have incurred in case of intermediaries, they might have got a long term client. Entrepreneurs might also want to go rural as the competition might be very low as compared to urban market.
#5) Right manpower: Having dedicated manpower with which your idea of success can resonate is very important. Entrepreneurs can adopt the following points:
Hire deserving people from the nearby universities
Motivate them, give them good package and give perks
Provide a good working environment
Delegate decision making role to them so that they feel encouraged