As a business owner, no two days are the same and your profits can differ just as much. It’s the challenge, and the risk, that makes owning your own business so exciting.
And we’ve got some great news—there are specific strategies you can put in place to help you build a profitable business right from the start.
Forget leaving your income stream up to chance. For today’s blog post, we’re helping you take control of your business and your future (so get ready!).
5 Steps to Building a Profitable Business from Day 1
1 | Take Inventory
If building your profit margin is a goal you have for your business (and what business owner doesn’t?) then you need to start by auditing your revenue stream.
That means figuring out exactly what it is about your business that will make you money.
For some business owners that could mean selling services, physical products, digital products or a combination. It may seem really simple, but when you aren’t clear on your business goals in terms of financial gain, your train can easily become derailed.
Decide up front where your revenue should be coming from (for example, 80% from services and 20% from physical products to support your services). Keep this in mind as you develop a marketing plan and strategies for the future of your business.
Want to know more? Here’s an easy guide on how to make your first $1,000 in business.
2 | Create Your Own Niche
To build a profitable business from the beginning, the products or services you’re selling should be tied to a problem people have that only you can solve.
Now go back and read that last sentence. There are two really important takeaways: creating a solution to a problem and you being the only person to do it.
In other words, carve out your niche from the get-go.
Of course you can start a business doing the exact same thing that hundreds of other people are doing.
But how are you going to stand out from the pack and gain market share if you aren’t doing something unique?
Before you launch your business, you need to be able to articulate these three things:
What problem is your business solving? That could mean anything from finding a more efficient way to clean your kitchen to helping babysitters pitch their services to people they don’t know. (Think about the first 30 seconds of a Shark Tank pitch.)
How are you different from your competitors? Know the landscape of your field and what you bring to the table. Is it that you can do it better? Faster? Cheaper for consumers? Find out what that is and own it.
Who is your target audience? “Everyone” is not the correct answer! Think about your ideal customer and have your voice, communication strategy and overall business plan tailored to them.
Here’s how to figure out what your audience wants to read
3 | Get Smart at Marketing
We’ve outlined some key marketing strategies to take your business to the next level and make you more money in this blog post (so give it a read!).
But a lot of those tips are especially applicable when you’re building a profitable business from the start.
A lot of small business owners make the mistake of focusing all their energy on the product or service they are developing and leaving marketing as an afterthought.
If you want to build a profitable business, don’t do this!
Think about marketing in tandem with your services or products.
If you don’t develop an impactful marketing plan, your key audience won’t be able to find you and you therefore won’t be selling as much as you could be.
Easy marketing tactics you can kick off when you launch is a Facebook group, Instagram page, Twitter page, LinkedIn account, email newsletter, and a blog. Just don’t make any of these marketing mistakes.
Here are 4 ways to promote your business that will give you a big return on investment
4 | Create a Great Website
This next tip ties in with the previous one. If you have a bunch of great marketing ideas, your website is the ideal place to house a lot of them.
For example, you can have your social media handles at the bottom of each page, and under a “learn more” tab, you can have a link for customers to sign up for your email newsletter.
Many business owners also make the mistake of thinking that they don’t need a website until they reach a certain goal in their revenue or until they have X number of customers. (No way! Check out these 9 reasons why you must have a website to build a successful, long-term business).
Creating a beautiful website that showcases your business in a professional way will help build the trust of new customers as well as serve as an e-commerce site for people to purchase what you are selling.
Don’t know where to start when it comes to building your dream website? Sign up for our free email course!
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5 | Keep Your Eye on the Money
When it comes to building a profitable business, keep sales-producing activities at the forefront of your business plan.
Start thinking about cooperative sales agreements with like-minded/complementary businesses.
For example, if you are a freelance copywriter, partner with a freelance graphic designer to cross-promote your services on each other’s websites. Or work to create a referral network with these business owners.
Implement other tactics that can increase sales, like a first-time customer promotion or a quantity discount when a certain amount of products or services is purchased.
Other things to consider for your business: demos, sales presentations, opening a booth at a trade show, etc.
Building a profitable business from day 1 takes a lot of planning and strategy before you even launch your product or service. With these tools in place, you’ll be able to hit the ground running. And with enough hard work, your business efforts will pay off.