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Now starting a business became a painless job. Yes, with the increase in no-code platforms and with AI, it became too easy to start a business.
However, running a profitable business is like a puzzle. Yes, it is a terrible scenario for business owners to churn out profits from their business.
Many businesses and startups are having a terrible time making profits. It is a big hurdle for business owners or entrepreneurs to run profitable businesses.
Here are some of the profitable business strategies with the real-time example of successful startups
Customer and Product Strategy
Many enthusiasts start a business without targeting the right customer with the right products. Several times many business owners fall into this net. Then they never come back.
True, if don’t start right and then you will never progress and end in the right direction.
Here are the profitable business strategy primary steps, tying the knot between product and customer.
If you target the right product to the appropriate customer then it is the best way to make your business successful.
Mamearth Business Strategy with the right product and customers
Mamearth was started by the parents Varun and Gazal Alagh when they failed to get safe baby products for their newborn baby.
Yes, they could not get chemical-free and safe baby products in India. Then they started researching baby products and launched their startup Mamearth in 2016.
Here, the Mamearth founders target mothers as their primary customers for their safe and chemical-free baby products.
Customers – Parents
Product type – Safe and Chemical free baby products
This is the primary step to turn your business into profitable.
Identifying the Pain Points
If you want to start a profitable business then your business needs to stand unique. And also need to solve the gap in the industry.
Yes, if you start the fruit business then there will be 10 more competitors with your business. So, you never take over your competitor. So, one has to think and build a business to solve particular problems.
Udaan Business model helped to solve the pain of the retailer
Udaan understood that retailers cannot make much margin on their sales. Because the middle man like whole sales will have huge margins. So, retailers did have the freedom to make more profits in their business.
So, Udaan understood the pain point of its customer (retailers). Now they are operating on a B2B model. Here Udaan sources the product from the manufacturer and directly sells to the retailer.
Now, retailers can easily buy the product at a cheaper rate than before. Eventually, retailers now can make healthy margins on their product sales.
In this way, the retailer can turn their average business into a profitable business.
Ultimately, building a business for solving the problem of the customer will help the business to scale and become profitable eventually.
Feedback from the customer
Most of the time the game of sales never makes the business successful. In tradition, many business owners try to sell their products instead of keep updating their products via feedback.
Building successful businesses or products lies in the hands of their customers. Yes, if the business owner aligns and develops the product according to their customer feedback then the business can become profitable.
Sugar Cosmetics Business plan by feedback
Everyone knows that Sugar Cosmetics became one of the leading competitors in the cosmetics space in India. The secret to their success is their customer feedback.
Before starting Sugar Cosmetics, Vineeta Singh and Kaushik Mukherjee build the “FabBag” beauty products subscription business. But it did not work. During those time, the founder of Sugar Cosmetics went to their customer and asked for their feedback and problems.
Then they understood that many customers expressed that there is a lack of choices in beauty products.
So keeping their customer’s valuable feedback, Vineeta and Kauhsik started their next business Sugar Cosmetics in 2015.
To build a Profitable business strategy one of the important steps is to get valuable feedback from the customers.
Then only there will be increased sales in the business and eventually your business turns profitable.
Marketing, Sales, and Operation
The primary step for profitable businesses is to get their product and customer right. But having a good product does not make the job. Yes, it is the sales team that bridges the gap between the product and the customer.
So, having a solid sales team is the most viable factor in a profitable business.
There is a breakdown in the Sales Process
Here the marketing teams attract the customer by building eye-catching posters, ads, designs, and content on social media.
The marketing team helps the business to generate leads for the products.
Then the Sales team will try to convert the leads into customers. Yes, it is the job of the sales team to convince and win the heart of the customer.
So, your sales team will make or break your customer buying the products.
In this stage, the Operation team will make sure that the product is delivered to the customer at the right time. Also handles all the inventory in the business.
Roles in the business matters
All cannot build the business because business is not a one-man game instead it’s a team play.
One has to look after the team and also want to make a great team for a profitable business.
Successful businesses will have a successful leader and a team. After being a business owner or entrepreneur he or she has built a great team.
Also, want to assign the roles according to their capabilities. Then only one can give their 100% to the business growth.
Twitter Terrible Roles and Elon Mush Business Plan
Everyone knows that Elon Musk purchased Twitter for $44 billion in 2022. Soon after Elon Musk took over Twitter he started firing 50% of the Twitter employees.
Elon Musk was shocked that there were 13 reporting managers under one department in the company. These 13 managers were not necessary and also become a hurdle for the business growth.
So, Elon Musk fired its employees to restructure the team and give appropriate roles.
Ultimately, Roles rule the business operation and success.
Also Read : How Bookmyshow started
Goals for Profitable business strategies
From our childhood, we all are hearing the same old nostalgic lines ” Having great goals in life is very important “, and ” Goals shape your future”.
But most business owners forget the basics and never sets goals for their team.
To get desirable output one has to
- Set the goal
- Track the goal
- Archive the goal
These are the three essential steps for profitable business strategies. Businesses should have goals to achieve. Then the business owner can track the growth timely.
Mentoring and Developing the team
Giving the right direction to the team is quite essential for business growth. So, many organization insists on motivating their employees all the time.
Everyone cannot be the same. All will be dealing with their problems in life. So, guiding, monitoring, and mentoring the employees is a major task for the company
A successful business can be built with great talents. Therefore, it is essential to nurture and develop skills and the well-being of the employees is a must for any business.
Never Stretch Too much : one among profitable business strategies
Being a business owner, one has to give more space, comfort, and freedom to the employees. Then only employees will have the motive to work towards the goals of the business.
Many business owners will have strange behavior with money. As they want to get it done cheaply but they need profits to soar.
It will never happen like the same. As a business owner, one has to give more to get more.
Successful Businesses can build by giving more freedom and comfort to their employees.
Money Management in Successful Business
Many businesses will never have a track of their cash flow. So, keeping a check on cash management is important for businesses.
One needs to keep track of the cash flows and also needs to check on the expenditure flow as well.
Then only the company can set a target to overcome expenditures and can expect some profits.
Byjus is horrible at Finance
As everyone came to know that Byjus are under losses. In 2022 their valuation went high up to $22 billion but in 2023 their valuation came down as low as $5 billion.
The main reason for the downfall of Byjus was money management. They kept on expanding their business without having wise knowledge of the cash flow.
Then they went on expanding by burning out investors’ money and least bothered about the profits.
Even the Byjus are terrible in finance because they did give their financial report on time in 2020.
Shocking news came out that Byjus did not have any CFO on their team who heads the finances of the company.
So, terrible financial management led to the downfall of Byjus
To have Solid profitable business strategies then the business need to keep an eye on their finance wisely.
Happy Employees Turn Business Profitable
In the end, your employees will help the business to scale and grow. So, business owners need to satisfy their employees with the right kind of payroll, respect, and freedom.
A successful business will be headed by the employees of the business. To build a great business there should be great back support from employees.
These are the Top 10 profitable business strategies for business owners.