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GTA Consulting
Jul 22 2018
Three crucial elements for building a profitable business  E-mail

By David C. Rich

Successful business people from every niche or industry will agree that building a profitable business is not rocket science. It calls for a combination of wining skills and mental aptitude, but that is not to say that you need to be some sort of academic guru to make it work. Surprisingly though, the majority of successful people in business have turned out to be lacking in the area of what we call formal education.

Why then do many other businesses (online and offline) fail within a few months to years of starting up. The reasons are so many that listing them here would take us away from the focus of this article.

Three things stand out when I take a close look at the most successful entrepreneurs. I know there seems to be so many things in business to do but I’ve found out that once these three things are in place a lot of the others tend to fall in place more easily.
Let’s dive in.

1. Mission & Vision
Successful entrepreneurs have a clear vision and focus of what kind of business they want to build. This is very crucial especially in today’s world where there seems to be more opportunities than people to take hold of them. They don’t go about searching for the next hot trend and try to build a business around it. You’ll notice that they usually are the best in their field so we can agree that their choice of business is in the area of their strengths and they FOCUS on it.

They decide on the mission- the assignment their business will fulfil in the lives of their customers. A business’ mission must be clearly stated not so much for the customers benefit but for the business and the business owner to always have in mind the purpose of starting the business. Beyond making money a business must focus on adding value; actually when you stop adding value, you’ll stop making money. So write a clear mission on what value your business will be adding to your customers.

2. Market & Marketing
Successful business people understand their market. They know who their product or service is for – their geographic location, their age range, income, and a lot of other things that go into a market analysis.

More importantly and very crucial though is that they understand their customers’ pain points. It’s not just enough to know who can buy from you, if you don’t know what will make them buy from you and not your competitor then you’ve just identified your market only to watch your sale be shared among so many competitors.

Business owners who’ve been able to locate their customer’s pain points will tell you that this single information has made a tremendous impact on their business. A customer doesn’t buy for logical reasons- most at times they buy for emotional reasons and then support it by creating a logical reason for their action.

Find out specific needs that the customer wants solved, find what will make the customer irrational, emotional in his purchasing and you will have not only gotten a one time customer but most likely a lifetime customer.

3. Monetization
I’ve come to notice especially in online businesses that after driving traffic, promoting the business’ products and services and customers begin to come or visit their website that they end up loosing majority of their customers. You must not only know your market you must also know how to convert them to cash. Yes, I mean convert your customer to cash. This requires some skill and every successful entrepreneur knows that if this aspect of your business is not properly handled then the whole business would eventually wind up because one of the main purposes of a business is to make a profit.

Here are a few tips to help in customer conversion:
a. Let your advertising make a call to action- don’t go advertising like big companies who are only focused on promoting just a brand.

b. Push the free zone- don’t be scared to give and give and give for free. Customers will not only pay you money but will become a free evangelistic tool for your business so why not take advantage and let them have a good feel of what you’re offering. Now that is not o say you give them about one percent of what you’re offering and say if you want it, buy now. If you do this you place yourself on the same plane as your competitors and so you give the customer an opportunity to keep shopping for better deals.

You want to make sure that one they come I contact with your business or website they are over loaded with such value that they wonder to themselves that if the free stuff can be that good then the paid one must be mind blowing

c. Offer them additional products or services. In internet based businesses these are called up-sells, backend, cross sell- products that are related to your customers purchase. For offline business you can call this, integrated solutions. Don’t leave money on the tangle buy not having other value laden products to offer your clients otherwise when they begin searching and they don’t get it from you they’ll eventually shift to someone else and if this person knows how to turn his customers to cash then they’ll most likely never come back.

If you have these three critical elements in place for your business- your mission & vision, your market & marketing, and your monetization- you have scaled majority of the hurdles that make many businesses fail and you are well on your way to building a profitable business.

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David C. Rich is a business growth and marketing expert specializing in helping business owners improve profits and grow their business. Get more free business growth resources from www.smartbusinessbigmoney.com.