understand the elements of what drives your business.
Today, a business owner has to become intricately familiar with all aspects of his/her business. It is important to understand how your products or services are delivered to the customers, and the different delivery systems. As a business owner it is advantageous for you to understand the demographics of your customers. Which customers are actually purchasing your products and services? This is where the aspect of a well developed and implemented marketing plan comes into play in helping your business. So you’ll be aiming to answer the questions related to what is your target market. Do you currently obtain the analytics to study your customers and understand what are the crucial factors in their buying selections? The truth is customers will buy your products if they have a need for those products. They will continue to buy your products or services if it fulfill their needs, they like the products and they like doing business with you. The key aspect here is about building relationships. If you could obtain data to fully understand why customers purchase your products, you are likely to be more successful than if you have no data. With obtaining data, you will be more likely to understand how best to service those customers.
The business owner also need to understand the financials of the company. What is it costing you for your products or services? What is the selling price of your products or services? Having a basic understanding of the cost to you and your selling price to the customer will give you a sense of what kind of gross margin to expect, The gross margin expressed in dollars is gross profit. So now the next step is understanding what costs you have in operating the business. Have you considered items such as rent, advertising, salaries. If you understand your costs and you can control your costs then you will determine if you end up with a net profit or a loss. Follow the recommendation of starting with the end in mind. As a Business Owner, It is a good idea to start out with what you would like to see as net profit, then work back on what expenses will be determine what your product/service will cost and then determine if you are selling your products at a reasonable price to compete in the market.
I have looked at the financials for organizations where the primary focus is on maintaining certain Earning Before Taxes (EBIT) as a percentage of revenue and then managing the revenues and expense to achieve the earnings. Wise business owners, start out with understanding all the elements of their own businesses. Ensure that you put yourself in the driver’s seat so you can deliver the results you want in your business.
Free Webinar – Start 2022 right – If you are interested in learning about Zig4Success Free webinar for managers and business owners, click on the contact link below. Complete the contact form including putting the words “FREE WEBINAR” in your message box and submit.
https://zing4success.com/contact