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Top ways to turn your small business into a profitable business empire.
Small businesses are businesses that can be started with small investments. There are millions of people who are running a small or home business. Nearly 70% of newly launched small businesses fail due to lack of resources, competitions and various other reasons.
Before we look into the reason for the success or failure of small businesses, let’s look into some of the most successful companies that were started with some strong and innovative ideas. if you start any small business in the normal way, you can get just hand to mouth. To take a small business on the top you have to give something new and innovative.
how some ordinary people turned their small business in international business empire
(1). King c. Gillette: A traveling salesman found that straight razor had his dulled and it has become impossible for him to make a close shave. Many time dulled razor use him to cut his skin as there was no clarity was such that he began to think about new safety razor. New idea to make a twin blade razor was born as disposable blades can be inserted and replaced. Even though many engineers rejected the idea, but he continued to try and today Gillette have become billion dollar business. He introduced a low cost, disposable blades that can make the final and safe moisture.
Summary: He faced problems and wanted to find an innovative solution to this problem. Though he was a salesman with limited resources, but he knew the idea can be converted into money. He realized that if his dreams can be realized then he can turn it into a profitable business empire. This is the power of an innovative idea. An innovative idea can make unlimited wealth. Any small business can be turned into a big business empire if you try to introduce some new ideas.
(2). Tory Kumon: A high school math teacher in Japan, Toru Kumon, became concerned that another grade school son was coming home poor grades in mathematics. Encouraged by his wife to find a better way to teach his son, Kumon began to study textbooks and exercises used. Kumon felt that there was a better way and looked for an alternative method to his son. The Kumon working together while his wife oversees the work home to his son, Toru Kumon wrote back exercises and drills for his son, giving him slightly more difficult set of problems every day. By son had finished the eighth grade, he was working with calculus problem, quickly and correctly, and could see the works found on the university entrance examination.
Toru Kumon realized that if his son was with this problem, there would be other children in the same situation. Kumon then decided to take his methods to other parents whose children had this same issue. He did this by opening the Kumon learning centers throughout Japan. Kumon was not without his critics, however. Members of the institution against him – mainly because it was not their idea. They could not refute the fact that the Kumon system works. Kumon Today, more than 26,000 centers in 46 countries. This is the power of a small and powerful idea!
Overview: Kumon the problem – poor academic performance and defined it as an opportunity – an opportunity to create a learning system that would solve the problems of poor academic performance. After working with his son and find something that work, he found that he could provide this service to other parents who had the same issues. At the same time, he could generate income for themselves. He gave something of value and lower cost than many of the alternatives.
(3) Amancio Ortega, Amancio Ortega was born in 1936 in Spain. His father was a railway worker and his mother worked as a maid to support the family. Because of the financial problems his family was facing, at the tender age of 13 he started working as a messenger of shirt makers shop. Then he worked for a lot of shops and tailors and well studied how products and costs of products changed as they traveled from producer to consumer. As a result of this study, he stressed the importance of getting products directly to consumers by eliminating middlemen. The experience of working as a manager of local clothing shop he realized that only rich people were able to provide high fashion clothes because of the high prices they brought. Having observed this, he was determined to produce high fashion clothes that were low price and accessible to all. He continued to gain experience and knowledge while working until 1963 when he started his own company with only $ 25, he began to design and make a fine bathrobes and began selling it to customers and also began to give them a variety of shops . Later, with the profits he earned with the help of this business he started his own factory. Today his personal worth is more than $ 20 billion. This is the power of innovative ideas that small business is developed in the business empire.
Let us try to highlight the new ideas that he used to turn a small business in his fate.
(A) He realized the high end fashion clothes were only available to the rich people that only they could afford it. A large part of the price margin was consumed by the intermediary. To eliminate this problem, he started to create high end fashion clothes or rather look-like top of fashionable clothes for the masses at an affordable price by eliminating middlemen. In this way the number of people who bought his clothes increased and then he became very popular.
Benefits for consumers: Due to the innovative idea Amancio is middle class people who could not normally subject expensive and latest designs were able to take advantage of these fashionable clothes at reasonable rates.
(B) Direct Retail: Amancio clear that senior management officers as wholesalers, semi-wholesalers were to determine the final sale price of these clothes and so they ended up being very expensive. So he opened his own band called ZARA shops where he passed the margin that was taken by middle men to customers.
(C) When Amancio began its business; industry standard was to introduce a new fashion twice a year. Thus people had to wait a very long time span and would visit the shop only twice a year to buy new fashionable clothes. Amancio introduced a unique concept of instant fashion by presenting the latest designs and new fashions within 2-3 weeks. This in turn reduced the people to store many times a month. This also helped customers by bringing new designs on them and shopkeepers were good also because of the constant customer visits.
(D) Changes unsold design: Some designs do not sell as much as popular ones. What Amancio did was to modify and change the failed design so that they would be sold. He did this by setting up new patterns and accessories to the old design.
(E) The advantage of information: To learn more about what type of design sell and what type do not sell, and also to know more about unsold stocks, Amancio utilize information that allowed him to monitor the unsold stock. This also helped him to realize the actual taste of the customers.
Overview: Amancio Ortega started a small company with only $ 25, the day his personal net worth is more than $ 20 billion. At the time he started his business were already thousands of businessmen, developers, and established fashion houses but only he was able to make it to the top because he introduced something new in their small business and the rest is history.
Most self-made billionaires possessed or developed the following qualities to become rich and necessary for success in any business: They started with small businesses and developed into a business empire. Some of the features required to develop small business in the business empire are attached.
1. a burning desire to become rich
2. constant objective and sound business reality to it.
3. Faith and perseverance in your efforts and make the tough decision to never give up even after many mistakes.
4. practical action
5. Developing the ability to organize information and create something new out of it.
6. ability to innovate
7. Work towards the development of new ideas and innovation instead of worrying about the investment required for the company.
8. Compensating for the lack of education of self-education and master all the specialized knowledge with experience.
9. Find ways to make money without capital
10. Trying to create something new that would provide additional benefits to customers or to the industry.
11. They are not ashamed to pick up even a small job so that learning in and outs of the business and to sharpen their skills in this field.
12. Ability to turn even $ 1 thousand.
13 creates opportunities for themselves instead of waiting for them to happen
14. They mastered all the specialized knowledge required to cause the company and tried to learn all that is necessary to make a fortune
15. Designed their ability to create the best.
16 creates and develops only such things that have demand or that will be sold for sure.
17. They are not afraid of competition and beat it with the help of better products.
18. They always think and plan 10-20 years ahead of time
19. They develop a profitable idea to attract investment.
20. They start at the beginning of a knowledge based or skill based company.
21. They learn how to think like a customer and constantly trying to find ways to provide products and services at low cost and with high value.
Overview: what small business you want to start first of all to do research about concepts that are used by the top and successful companies. Now try to find some loop holes or better solutions and try to present them in small business.
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Source by Susheel Deora