The ultimate motive to run our own business is to earn
money. There is no second opinion about it. Our goal should always be to make
money. But it is one of the secrets; at least in manufacturing that you cannot
make money from Day 1. You have to build infrastructure, set systems, set your
network and then you can set your own tone. You will have big overheads on you
when you have machines, men, power, etc to pay. You need to cover those
expenses.
In the starting few years, you need to build customer base.
When you have enough customers, you can distribute those expenses/overheads and
then you can have enough time to breathe. Many startups close because of
different reasons. But you need to stay alive so after some time when time is
good, you can see jump in business/sale. So, my advice is to first build your
sales/turnovers and then once you have good constant sales, loyal customers,
you can look for more customers who are willing to pay high or you can look at
your supply side, operations side where you can cut some costs, bring in
efficiency. You can also try to increase the sales price to existing customers.
Once they see your service, products, they will be willing to continue with
you.
You need to aim for High Top line i.e. Turnover and then once stabilized, you can increase your bottom line by streamlining the processes.


No comments:
Post a Comment