Most people think that becoming an investor is simple. Once you buy stocks, they are there. Or, maybe you have a business idea. It just takes some time. You sell them to the right buyer at low prices. Your returns will be higher. But then things get tough. The profit margin starts to fade when you hear those words over and over again, “too soon.”
Let me explain this by example. Let us say I want my investors to invest their capital in our newly launched product. They don’t like it as originally expected. We should lower its price, add new features, etc. But they still have a feeling this is too expensive.
I am going to go out of sight and talk about how we can make our product better. Then you will know why we did not cut the price.
I am going to tell you, what I call today the 5-step investment strategy (in addition to being part of my portfolio).
1) Invest In Your Idea
The idea is good, of course. Many times it is too good to be true. What I mean, is we need to understand that in any business there are several possible ways to achieve success. Think about your own life. What would you like to improve? What do you love doing so much?
For example, it might seem difficult to succeed at marketing. We need to find customers who will keep coming back to us. That means researching your market and using online tools. When people start buying from you, you must follow through. Otherwise, you might make no revenue at all.
The same goes for advertising. If you find out there is a niche for which you can create a campaign, and advertise your wares, you will get clients. This is because many of the products you offer were created by other companies.
2) Look for Profitability
Our main priority is making our business profitable. Successful businesses use the following strategies to earn more than they did before:
Babies vs. Baby Boomers
Baby boomers tend to give away their babies, but don't expect to see results immediately. There are four reasons why Baby Boomers prefer to invest in something that has potential for long-term growth:
1) Brand Image
2) Location
3) Customer Service
4) Diversification
Brand image
A brand is the first thing that consumers look into when looking at any product or service. Consumers tend to check out brands more often than ever before. More people know that Nike has a great reputation for its basketball shoes. Therefore they tend to want more and more products with similar names.
Location is important, especially if your product is in another country. In countries where they are small, you need to consider whether it makes sense for them to buy locally. People from smaller areas tend to appreciate different things more than people who live in larger cities. Therefore, if your business offers services in large cities, it will probably be easier for buyers to find your business in such areas.
Also, if your product is located offshore, it is less difficult to promote internationally. Even if somebody thinks about trying your products as a result of your location, they don't necessarily plan to visit a foreign place, right? Therefore, if you are selling worldwide, it might make sense for you to have overseas sales offices.
3) Price
It seems simpler to sell at a lower price than make a higher one. After all, you want to attract as many buyers as possible to your product. With your pricing, you can control the price range. Maybe you charge $100 for 1 share. Now, let's assume each share costs $10. Since the commission is 20% of the share plus tax, each share costs $1.10. So, you had 30 shares, in exchange for 100 shares. Of course, you cannot charge more than you can earn. Some of these yields can be 10%. While it may be tempting to charge above average, you must focus on what you can bring.
4) Pay Credible Employees
When you get a client for it, you can count on regular phone calls. Every customer wants to stay in touch all the time. However, if you pay regular workers more than $25 per hour, you won’t be able to contact every client regularly. Moreover, you won’t be able to close deals in case the business fails. As we said earlier. Brands have a history of staying in business over years. Thus, keeping employees motivated is vital.
5) Keep Learning
You and I, alike-to-me, are both learning And you should always try to learn more about what you are selling. Learn from past successes. Use your knowledge for creative ideas and changes. Learn from your mistakes. And most importantly, don’t forget to ask questions about your industry. Ask anyone you can about your business. Always have a conversation with someone who knows a lot more than you do.
These five steps will help you make money. You don’t have to follow them exactly; you can try changing a few little bits here and there. Just remember, that your goal is to come back to this page and share some thoughts and tips with everyone.
No comments:
Post a Comment