Everybody wants to achieve success and these days everybody wants to build a business. There’s businesses growing so fast that they’re IPO’ing (look at snapchat) with unbelievable valuations while they’re losing 500 million a year! I always find it hard to believe that such companies can exist, but then again I look at how uninformed investors are and hope to make a quick buck. They have been proven wrong as the SNAPCHAT stock price dived nose down. But how can you actually make a true profitbale business with profits instead of loss? Here are some tips that can help you in the right direction:
Be on top of your expenses — unlike Snapchat or Twitter, you don’t have access to big capital on the stock exchange, so you need to spend your money a bit more wisely. When things are going well, you are more likely to take it more easy on expenses, but that’s the start of a disaster. Especially when things are good you need to buffer the money. What I mean with buffer is that you don’t raise your expenses but try to keep it at the same level. Yes, this means no fun getaways, drinks & playing around with the team. No free food and freebies for the employees. Yes it may sound harsh but they’ll understand. You’re in business, not kindergarten. Keep the nerf guns at home.
Don’t micromanage — train your people properly and trust them after that. You don’t need to micromanage tasks. Give each person in your company a (big) responsibility and they’ll also have the feeling they’re making a difference, and that’s a big factor in employees satisfaction.
Sales, sales and more sales — every business stands with their ability to sell. If you can’t sell your product will fail. Period. You can’t expect customers without prospecting. It’s called sales for a reason; you’re selling a product and it needs somebody to sell it. Yes, apple doesn’t call you to order a macbook, but they sure do a heck of a job marketing and in the stores they surely do sell products to you. But unlike Apple, you don’t have a big settled brand, so you need to sell a little harder 😉 Sales is your core lifeline in business. Money is food. Money is progress. The income you generate keeps your business going forward.
Have regular meetings — don’t get out of touch with your team. I personally do a meeting every monday and every friday. On monday we discuss what needs to be done this week and any questions will be discussed. On friday we’ll evaluate on what went well and what could’ve gone better. Everybody has a fair chance of making up their mind and speaking out. Nobody has to worry about being disliked or fired. This way you get fair and unbiased feedback from your own team. This is gold.
I hope these tips will help you keeping your business profitable. As you can see; it takes some discipline but that’s the hard part; discipline.
On your success!
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Ralph Karseboom is an Entrepreneur, all round IT guy, motivator & Writer. Find more information about him at https://www.ralphkarseboom.com