5 Critical Concepts for Business Growth & Profitability

People often go in business for themselves because they have a special knack or interest in something. They soon realize however, that that knack is not the only thing they need to be a success.

There are many internal factors that influence how fast or how big a company will grow. If the owner doesn’t acknowledge and attend to those critical factors, they are setting their burgeoning enterprise up for potential failure or enduring mediocrity

The most critical factors often aren’t always obvious but I’m ready to share them with you right now to help you navigate the perils and enjoy the benefits of business ownership.

Here are 5 simple, yet critical concepts you MUST master if you are to experience the growth and profitability you desire.

1. Know your strengths and deficits – intimately
When you’re crystal clear about your skills, you can leverage them to move mountains. You can also use them to counterbalance your weaknesses. When you’re working in your blind spots, you’ll struggle to accomplish goals. You’ll try to do things you shouldn’t and fail to delegate profitably.

2. Work within your value system
The whole point of being in business for yourself is to more closely control your own destiny. Without a thorough assessment of what’s important to you, day-to-day and for the long haul, you rob yourself of bringing in experiences that will create the fulfillment you need. Once they’re clearly articulated, your chance for fulfillment increases dramatically.

3. Understand the marketspace you operate in
When you target the highest possible level of clientele for your product or service, your fees have room to expand. When you clearly distinguish yourself from the competition, people will seek YOU out.  If you go to market blindly, you run the risk of stepping into a crowded space, missing out on opportunities to leverage your company’s unique advantages and not being prepared internally for growth.

4. Have a variety of sources of revenue
You’ve probably heard about the importance of diversifying your investments. Well, your business is one of the most important investments you own.  While you can make a great living selling just one product or service, with more options, you’re likely to improve your revenue stream.  During the recent recession, many businesses had to expand their offerings to appeal to additional markets. Even as the economy recovers, having various offers for various kinds of customers can help maintain your revenue stream. Just remember to not diversify to far afield. If that happens, you run the risk of spreading yourself too thin and becoming ineffective in your efforts.

5. Utilize your time in the most effective manner possible
It’s tempting to work on that which is easy, comfortable and familiar. Unfortunately, those kinds of activities rarely lead to outstanding results. “Magic occurs outside our comfort zone.” Work in your personal ‘sweet spots’, delegate the rest and focus on the highest profit potential activities possible.

These concepts are critical for your success. Implement them and practice them consistently. They will pave the road to profitability for your business

Enhanced by Zemanta

Leave a Reply

Your email address will not be published. Required fields are marked *