How To Make Money In Business ? A Strategic Plan with Example Story

by: Mr. Ven 3

A short story of a business man…

There lived a business man named Dev, he wanted to became rich and he was ready to work hard too. He had enough money in hand and he invested into a business. Basically, he didn’t know anything about business and the only thought he had was: “become rich”. He went around, migrated from his town to a near by city and finally, opened a super market.

He invested lot of money to fill the stock and also, invested a lot to advertise his business locally. Days passed, weeks passed, he found people were not coming to his super market and only very few were making purchase. After 3-4 months, we realized that there were already 3 super markets in the same area and they were all well established too. And also, he realized that people didn’t walk into super markets and they were almost served through home delivery. Later, he hired few delivery boys and advertised like, “I do home delivery”.

After few days, he started getting orders and his business started picking up. Soon he realized there was a slow drop in the orders and it started to decline in the next 6 months time. He was confused and went around towards other 3 super markets. He found that they had installed a best phone addressing sytem which automatically took orders and also, it never puts the customer call on-hold. Then he realized that, people expects to give quick orders and he was not able to serve them quickly (because he took orders manually).

Dev got frustrated, then he installed the same automatic order system. Now he went back and invested again lot of money in advertising his super market saying, “I take quick orders and do quick delivery”. Soon one day, he revised his journal and prepared a profit-loss calculation, what he found ?

Simply, no profit, 100% loss, over stocked items… What happended to his dream ? He wasted almost a year, he wasted all his money….

Dev's...

Now, coming back: What was the mistake done by Dev ? Why he was not able to survey with his business ?

The answer is very simple: he failed to analyze the market, he don’t know about his competitors, he never planned his business properly. He changed his approach/strategy only when he got a hit.

Okay, let see how not do a business like Dev….

First, Understand Your Market & its Audience.

When you are about to start a business, the first activity should be “Market Analysis”: Understand the market, learn, how the market works ? how the market trends ? how the market struggles ?

Find out, who are the competitors ? how they are established ? how they survey in that market ?

Once you are able to understand the market and its competition, you could prepare yourself to get into that market well. For sure, it gives great input to your business and you will quickly pick up too.

Apart from the market & its competition, the “target audience” is more important. They are the customers and your business is gonna interact with them. You business serves the audience and they are the backbone too. They are the source of money in your business. When you are able to understand that audience, you could serve them better, you could help them, you could solve their problems.

This way, you could gain their TRUST and grow your business higher. In our example, Dev doesn’t know that there are already super markets available in that area. Also, he could not understand the customers and hence he manually took delayed orders.

The following articles may help you further in this topic:

Locating “spots” To Make Money.

This is an intelligent part of business, locating the “spots” which makes money. You have to think your business as a “system”.

Lay down the flow of your business and locate the spots where you could introduce a “condition” which could be a payment gateway. For example, you could offer something “open” to the customers just “not fully open”. This is a “condition”, when they want to use it fully, they have to pay.

This is one of the best model of making huge profits in any business which accommodates “partial openness”. What i want to tell here is: make a complete flow control of your business like, where the control goes and where it comes, then identify those “spots” which makes money, then implement the same.

Simply, Don’t Work For Money (Work For People).

Don’t work to become rich like Dev. Instead, work for the people. Understand them and tweak yourself for the people.

Find out the real needs of people, address their problems, give better solution.

You should not directly or in directly show that you are working for money, don’t take such opportunities to crack yourself.

When it comes to people/customer, feedback is more important. Get feedback’s, analyze it and see, how you could improve your business. When you are able to get feedback from customers, you could measure your results too.

Keep in mind, when you started working for people, you are indirectly working for money, profit rolls-in….

Plan & Forecast Your Activities Ahead.

The example of Dev, clearly shows the effects of improper planning. Plan everything in your business. Take a short note and list down all your planned activities. See, how you are going to approach each of them. This gives a better idea of what to do ? what you need ? and finally, how you are going to do ? Forecast the activities and this gives a big picture of how the results will come tomorrow ?

A tutorial on business plan may help your further.

Finally, when you want to make money in business:

analyze the market, understand the competitors and your audience.
know all the possibilities (the “spots”) of making money from your business.
don’t just work for money, always work for the people which directly gives profit.
fix goals, always plan all your activities & follow it strictly…

When you follow these tips, definitely you will see an upside in your business….

image: agnes1601