Profitable Business Tips
1. What business is profitable? Depends on the industry and turn
There is a direct response to say, “This business is profitable.” Much depends on the industry that is the business and its business or activity. (I recommend reading the post of good business opportunities for industry opportunities). For example, the technology industry is having an incredible boom, we have new and popular products such as iPods, Tablet PCs, laptops under $ 200 … however, the return varies in terms of activity you do.
For example, those producing technological devices like cell phones, they lose money! The way you make money is with monthly payment plans that force you to hire for a minimum of 2 years. Otherwise (by bringing the micro-entrepreneurs) is selling computers.
Despite being a product that has a lot of demand, the counterpart is that it is very tender. Therefore prices have become cheaper, but they make the profit margins of the sellers are so low.
2. What business is profitable? Depends on the business plan
Consider this scenario: you decide to put this business of selling computers, because it is growing much demand for computers. The difference between winning and having some very profitable business is your business plan .
It’s very different “think” that a business is profitable and only this reason, put it in the overnight (this happens very often and almost always ends in a failed business) to “investigate and verify” that the business is profitable through a business plan with ideas, numbers and figures specific to your business profitability.
3. What business is profitable? Depends on the capabilities and skills of the entrepreneur
The cost of a business has two faces: the one on paper and real. (To read more click on Business Myths ) For example, say you buy a franchise for the sale of computers, and will ensure that profitability is 20% (ie, you will earn 20% on your investment each year) .
However, you do not invest enough time, is equal to its customers, hire a salesman who knows nothing about how to sell … all this, though you may not believe, is what IS the business, and therefore affect whether the business is profitable or not.
This is ultimately passed the REAL cost of paper by 20%, maybe 2%. That is, all the money invested is earning only 2% per year (less than the accumulated inflation over the year).
4. What business is profitable? Depends on the location of the business
Another factor seldom discussed in books and courses of business is the value of the business location. Following the example, say you buy the franchise for the sale of computers, but put in a room you have in your home, in a colony or familiar neighborhood.
Most likely, in 6 months to close his business. The location of the business is among the top 3 most important factors to consider for increasing sales . For example, the location where the business can be more profitable, in this example would be in a Computer Plaza or at a mall.
5. What business is profitable? Depends if measured in percentage or amount
Many entrepreneurs make the mistake of looking at CIFAS in numbers and not percentages. For example, say you sell computer parts in his shop, and the numbers tell the following:
Computer For Sale – Sold $ 10.000 – $ 1.000 Total Income
Sell Computer Maintenance Service A – Sold $ 500 – $ 250 Utility
What product worth promoting more?
Answer: mantemiento Service. If you see in terms of percentages, profits generated from the sale of computers to 10%, but in the service of MAINTENANCE generated revenues of 50%.
6. What business is profitable? Conclusion
If looking for ” What business is profitable ? and wanted to be told “This business, chances are that you are lying. Unless given a set of such balance sheet, costs, sales, etc., The only way to determine whether a business is profitable business is to think that interest you and determine how to make it profitable through a business plan.