Profit maximization is the goal of all businesses started by different entrepreneurs around the globe. Whenever you think of starting a business, you usually figure out how much profit the business is likely to bring after a given period – ideally one year for small businesses and 5 years for large scale businesses. We spend valuable time thinking of how rich we shall be after out business achieve results. But do we really do what is necessary for the business to make profits? Do you have the correct strategies to achieve the objectives you have for you business? In this article, I will analyze the reasons why I think most business fail to make profits and make end up closing after opening door for a short period.
Most businesses fail to make profits because of imitating what their competitors are doing in the wrong way. Lack of creativity, uniqueness and innovation is a time bomb for a company/business to fail. If you are getting into business and you simply want to copy what you competitors are doing without having a good research about the specific market, you are doomed to fail. Do not try this kind of behavior- you are frustrated, you will give after starting, you will lose you capital – do try this in your business. I do not deny the fact that we can get ideas from industry players, am simply denying the fact that you can succeed by simply copying what the industry leaders are doing.
For instance, Facebook is the leader in industry of social networking (whatever this statement means). If you need to compete with Mark of Facebook on this industry, do not copy how Facebook does things, get the idea of networking and innovate something unique from the niche. I would like to bet that the ideas of Twitter and LinkedIn were developed on the basis of what Facebook was doing – network. The guy for LinkedIn uses the platform to connect professionals but is all about networking. The guy of Twitter is no exceptional, it is all about network, follow me I follow you, people are connecting. Got my point?
Using wrong marketing strategies is another reason why your business does not make profits. You need to define your target in group well and understand its preferences before developing strategies to create awareness of your brand to the group. Get the right human resource that adds value to your business and you will on your way to maximizing profits for your venture.