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How to start a profitable business

To start a profitable business in modern conditions, you need to know some important points. The bottom line is that times have changed and now the business does not start as it began before. In the old days, it all started with the construction of the plant, if it was about production, or with the construction of retail space, if it was about trade.

How to start a profitable business

It was right to start a business like this in the past, because there was a widespread shortage of goods and services. You build a plant, produce anything, and it sells well. Or you build a shopping center, import goods into it and they leave like hot cakes. Now, to start a profitable business, you need to act in a completely different way.

The inertia of former times remains. Now many continue to use the outdated approach – first they open a company or build a factory, start to produce something, but very often it does not go and the product is not for sale. In modern times, this approach does not work, because so many capacities have been set up that it is possible to produce more than to sell, and several times.

In today’s world, consumers are in short supply; nobody needs them. If so, then, at present, it is necessary to start a business from the production of consumers. If you know how to do this, then it makes sense to open a business. If you don’t know how to do, then either you need to learn how to create consumers, or you can think of a different occupation for yourself.

One simple fact needs to be recognized – now the answer to the question of how to start a profitable business does not sound like it was 10-20 years ago. These are the realities of the modern world and you need to adapt to them if you want to make money. First of all, it is necessary to fundamentally rearrange all business processes, because now a different business algorithm is used. It looks something like this:

choice of market space
the study of the “population” of the market space
creating a product sample
creating needs
consumer creation
creation of capacities for the production of goods
distribution network
product release and distribution
How to start a profitable business
How to start a profitable business

To start a profitable business, first of all, you need to select a promising market space. Yes, it is the market space, i.e. a certain territory where there are potential consumers of your products, because the market is not yet discussed, because the market is a collection of consumers that we do not have yet and we still have to create them.

Once a market space is chosen, it is necessary to study its “population”

The choice of market space can be carried out according to various criteria. For example, it may be the distance from the place where we plan to produce products to the place where it will be sold. Or it can be a space where potential consumers have a certain level of income, in general, any convenient variable can be taken as a criterion.

After the market space is chosen, it is necessary to study its “population”. It is very important to carefully study the “population” of the market space, i.e. potential consumers. If you ignore its characteristics, then you can pay very cool. With information about potential consumers, you can create the product that suits them the most.

To explain on fingers that we have some kind of super-duper product is possible, but rather difficult. It is much more efficient to have a sample and seduce those whom we see as consumers. The trick is that it does not always have to be some kind of ready-made material sample; very often it’s enough to build a virtual sample and promote it.

Creating a virtual product is much cheaper than real

Suppose, if we are going to produce mobile phones, we can create a virtual device, endowing it with different characteristics and in this form begin to promote it. Creating a virtual product is much cheaper than a real one, and by this very many companies first create a virtual sample of the future product and work with it.

After there is at least a virtual model, the population of the market space needs to create a need for a product or service. As a rule, any potential consumer initially has little concern for our products. He has his own rhythm of life, his habits and current needs. He does not pay attention to goods that go beyond their limits.

If you offer a person a product that he does not need, he will most likely hold it in his hands with great curiosity. He will show by all appearance that he is interested and we will begin to think that he wants to buy it. However, in 99% of cases, the potential customer will turn, twist and return the goods. After a couple of minutes, he will completely forget that he saw him and is unlikely to ever remember him.

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