Lilit Davtyan is the CEO of phonexaan all-in-one marketing solution for calls, leads, clicks, email, SMS, accounting and more.
The prospect of building a successful business can be exciting, and with this renewed excitement comes high expectations and even higher demands. Entrepreneurs can expect a series of long days and sleepless nights if they want to increase the profitability of their business or even prepare to launch a new venture.
Before getting ahead of the curve, entrepreneurs should do their due diligence and plan strategically to develop and sustain a profitable business, especially if the business has not yet gone live.
As CEO of a company that provides performance marketing software and various marketing automation solutions, my responsibilities include leading the company’s financial growth initiatives. These initiatives are often driven by analyzing data, controlling costs and discovering new areas of growth.
With that in mind, here are some tips business leaders can consider to build a profitable business.
Track organizational characteristics and quantifiable statistics.
Ensuring your business remains profitable during a pivotal point in business growth starts with tracking organizational characteristics and quantifiable metrics.
Often the first year – or up to the first two to five years, depending on the type of business – is extremely complicated. It gets even more complicated as a company hires more employees and installs more infrastructure, especially if the business isn’t organized from day one. It’s also normal to experience frustration when sales don’t grow as expected. One of the best ways to combat this common phenomenon is to organize your company’s characteristics and metrics so that you can analyze your progress more clearly and prevent your motivation from waning.
Quantifiable Statistics can help you assess the financial health of your business. Business leaders should always ensure that they — or their finance department — receive progress reports on corporate finances as often as possible. While financial numbers are likely to fluctuate, you can still identify trends and patterns to better understand the factors impacting your bottom line, be it industry changes, political climate, or climate change. economy. Recognizing these patterns helps you keep expectations in check and focus on areas for improvement.
Determine possible cost-saving measures.
Re-evaluating all business units to determine if costs can be reduced is essential to increasing a company’s long-term profitability. For example, marketing costs can be significantly reduced or completely eliminated depending on the stage of business development your company is currently in.
Sometimes it makes sense to start marketing your business from scratch, but in other cases, it’s better to build out your business before implementing marketing initiatives. This potential cost-saving measure depends on the type of business you operate.
If you’re in the tech industry, brand awareness campaigns are crucial, so marketing usually starts early and costs increase accordingly. But that doesn’t mean you have to hire multiple employees to do the marketing. Instead, you can allocate funds for marketing, assess your client portfolio, and market your business cost-consciously without hiring a marketing team. Unless your company has a real product ready to go to market, you probably don’t need to spend that much money on marketing early on.
Discover collaboration opportunities to drive growth.
A critical step to growing a successful business for long-term profitability is identifying potential collaboration opportunities. I suggest looking for partnerships that complement your products or services. You can partner with an established company with a good reputation, but make sure the partnership has the right synergy for your business.
No company operates on its own. Consumers do not just invest in one product or service; they get multiple things from multiple product and service providers. That’s why you need to determine which potential partners are the best fit for your company’s products and services. From there, you can approach companies that have the credibility and reputation to help improve your brand and business model.
Determine what makes your business different.
Building a profitable business requires entrepreneurs to keep an eye on the competition. To better position your business against competitors, highlight what makes your business different from others in the market. This does not mean that you should focus on your competitors’ weaknesses.
The first question potential customers often ask is, “I am currently using this product/service. How are you different?” It’s not so much about how your products or services are better, but about what your business has to offer that consumers are currently not getting from the competition. So the mission statement of your marketing materials must be accurate and your unique use cases must be transparent in all your approaches.
Maintaining long-term profitability may seem daunting at first, but with a strategic business plan, a successful business will be within reach, perhaps even sooner than you initially anticipated.