making profit in business, how to start making money in business, make money in business

Are you looking for techniques to make money online? Or maybe looking for the rules for making profit in business. Everyone wants success in business but very few follow systematic approaches. Before we dive in, make sure you are aware of the business failure rate in the world. As per the data available in the public domain, more than 90% of the businesses fail in less than 18 months of starting a business. Additionally, very few of them which survive make it to the top. Therefore, nobody can assure success in business. But on the other hand if we use correct techniques of minimizing risk in business, we can also increase the probability of making profit.

With real time experience of managing businesses I am listing 5 rules for making profit in business. In other words, it is a tutorial on how to start making money in business. If you use them in your venture you can minimize the failure rate.

Here is a list of rules that you can use to make business successful.

1 – Meaningful Goals
2 – Create an Action Plan
3 – Assign Roles & Responsibility
4 – Limited Hiring
5 – Use Performance Tracking System
6 – Written Communication
7 – Use Technology8 – Outsource Business
9 – Do not Get Cheated
10 – Data Protection
11- Learn Diplomatic Language
12 – Free Marketing Tools

Let us now understand all the pointes in little more detail.

1) Set meaningful goals for making profit in business

This is the first and most important rule. Most businesses make this mistake. In many cases the primary reason for a business failure is an unrealistic goal. When you expect too much without realizing your capabilities you cast the foundation of failure. We always recommend creating meaningful forecasts. This also be attainable and measurable.

2) Creating an action plan

Creating an action plan is important for successful execution. When you do forecasting for the future, you cannot do it without planning. An action plan is your master key for making profit in the business. When creating a business plan, you also make note of the possible challenges. You must do a SWOT analysis to make sure you are aware of your strengths, weaknesses, opportunities and threats. Due to this you will also remain more focused. Don’t just imagine everything in the brain, simply write everything down and share with key stakeholders for potential changes if needed. Other than this you can also break everything down into small pieces. This will make them more achievable and measurable.

3) Assign roles and responsibility

Your success is directly related to execution of the plan. If you do not assign roles and responsibilities the work will surely get delayed. This is normally not the employee’s fault. As a business manager, it is your responsibility to make the right plan and assign the tasks. You can also use some task management software for this purpose. A task management or work management software has the option to assign tasks and later measure the result. If you use a centralized system for all the employees, it will be easy to find who are working towards making the business profitable.

4) Need based hiring for making Profit in Business

For making profit in business it is important to keep expenses under control. Many startups make this common mistake. They are involved in recruiting activities very soon. Without working on the real time requirement this can be disastrous. As soon as the new recruit signs an employee joining form, he or she is eligible to get a salary. The idea is to keep the monthly expense to the minimum possible. Many businesses find them in a cash crunch situation in a few months of starting. Salary, rent and other fixed overheads are the primary reason for this. Therefore, we recommend that you hire only when it is needed. Need based hiring increases the time of survival by a huge margin.

5) Performance management system

Make sure you are using a dedicated performance management system in the company. Your employees are the main ingredient for making profit in business. Irrespective of how capable employees are, you may face slow growth without measuring the performance. A performance management system tells us about scope of improvement. We can create a performance map of employees. We can reward the performers to keep them motivated and train the under performers to ensure they improve. If you really want to make money in business, make sure you measure everything. From employee performance tracking to comparing goals to the on ground results everything is important. These comparisons and performance measurement tricks will tell you the real image of the business. You can also make changes if needed. Due to this you will engage yourself in the process of continuous improvement.

6) Understand importance of written communication

We are human beings and we tend to forget things very quickly. Employees often forget verbal communications and it is very normal. In the absence of written documents it is hard to convince people in case something goes wrong. In other cases when the written communication is available, we can easily recall. First of all this works as a reference and also saves from blame game. Therefore, make sure you are sending written communication to all stakeholders. You can also create email templates. With the help of email templates you can save time involved in writing emails multiple times. You can save the standard email formats and business documents as email drafts. Saving time is also one of the important things in making profit in business.

7) Make use of technology to make money in business

Every business must make use of technology. Starting from website development for small businesses to promoting it you need technology. The Internet will help you to make money online in business. Digital marketing is also an effective tool for making profit in business. We claim this because you can measure real time performance of your digital marketing campaign. Additionally, you can fix your monthly budget to make sure you are not over spending. With technology, you can easily make employee scorecards using software applications. You can compare previous performance with the current month’s performance. Therefore, you will be in a win-win situation.

8) Make use of Outsourcing Services

In many situations working in house is more expensive than outsourcing. Therefore, do little research on the cost of outsourcing services for key departments. If you find a better deal then there is nothing wrong in hiring experts via outsourcing. There are many advantages of outsourcing. First of all you save a lot of money that you can use for marketing services. One of the best ways to increase profit is to invest in marketing services. With outsourcing, you can also reduce the cost of marketing for small business. As a result you get more customers and revenue in business.

9) Stay alert and do not get cheated with fake companies

Many will not believe but fake companies exist. Many of them exist on paper also. Therefore, you should always be alert while doing business. One wrong deal can push you towards business closure. However, most of the fraudsters never reveal their identity. Due to this the amount they cheat is in smaller units most of the time. As a business person you should know how to check if the company is fake or genuine. You can use some free tools to check company details and become scam proof. Starting with checking if the website is fake or real can be a good idea. Not getting cheated is also a step ahead in making profit in business.

10) Data Protection is important for making profit in business

We live in a connected world where most transactions happen online. The world is more technically sound than ever. Additionally, a lot of people are using the internet for financial transactions. The Internet has already replaced the traditional ways of making payment. Due to this, data protection for small business is important. If you want to make money in business then always be active. With a small mistake your data security can get compromised. As a result you may lose important client information. If you lose financial data then the threat can become bigger. Therefore, you must be very careful when sharing information with a third party or using a mobile application. You can use simple techniques for data protection.

  • As far as possible, use data encryption to safeguard privacy.
  • Avoid using a lot of mobile applications on your business phone.
  • Never use an easy to remember password. It is fine if the password is tough. You can simply write it somewhere and keep it at a safe place.
  • Use trusted software applications for managing business.
  • Always read terms and conditions before using applications.

You can use all these techniques or rules to make money online in business and offline both ways. What you choose is dependent on the nature of business and your commitment towards your business.

11) Learn Diplomatic Skills and speak diplomatic language

Many people will not relate with this at first glance but it is one of the best rules for making profit in business. Understand this with an example. You are running a grocery store and you watch news about a criminal arrest in the neighborhood. Suddenly, you realize that you know this person and start speaking about him publicly. You already know that he is a criminal but are you sure he will not take revenge? The answer is you should never speak against anyone until it is related to you. Similar things can happen if you speak against a politician.

Raising your voice is good and important especially when you are in a democracy. But timing is most important.

As an entrepreneur you should make as many friends as possible. Additionally, you are here to make money in business and not make enemies. Friends will increase your chances of growth. Learn diplomatic language and communicate professionally. If you want to criticize someone, do it in a way that your statements do not harm business interest.

12) Use Free Marketing Tools

We live in a connected world. The world is also modern and uses technology. Due to this there are many free marketing tools for small businesses. You just have to invest your time and very limited resources. With little effort you can make big difference when it comes to making profit in business.

Change Language »