Profit is the thing every business is done for. If a transaction is done not for profit it is not business, rather it is something else. Knowing how to make profit before starting a business is very essential to success of business. The age-old techniques of maximizing sales and minimising costs are there, but is not working in the present world. There is a limit to maximizing revenue and a limit to cutting costs. Beyond a point they will cease to give the desired results. So what should we do? Well here are some secrets:
- Identify and nurture Key Clients – Every business will have some clients that give regular work and keep on giving more work. Concentrate on these key clients. Make processes which makes it easy to do delivery for them. This will help to improve your earnings and bring stability to cash inflow which eventually converts in profit.
- Start Consulting – Any business you are in you will have strengths. For instance if you are in online business and know how to manage social media, start a consultancy for social media management. It brings out the creativity and also will give you cash inflows.
- Network Continuously – In the past 5 years of my business I have got more clients from my known people(Networks) than by active marketing. So always meet new people and hone your networking skills. They are critical for success.
There are more secrets to making profit which I will be unveiling in the next post. Meanwhile just follow these, they are simple but sure ways of making profit.