7 keys to make a micro-enterprise profitable

Successful micro-enterprises increase their profitability by implementing new alternatives in sales and positioning. The keys to growth

The fundamental mission of everything micro entrepreneurship to hold itself up over time is to make it profitable.

The cost effectiveness is he benefit average of the business for all of the investments made.

For example, if the gain of a business in a year it is 10%, it means that you have earned 100 pesos for every 1,000 pesos invested.

“He objective of all business is to increase your cost effectiveness and to do so you must have a strategy solid that not only keep in mind ´price of sale´ less ´costshe says iProfessional the entrepreneurial and entrepreneurial coach Daniela de Lucía.

That is, in the words of this expert, the strategy to increase cost effectiveness of a micro entrepreneurship it must be comprehensive and contemplate the prices, sales, communication and leadership to carry on.

“The cost effectiveness of a business is the result of their behavior from all their areas, it is not just the result of balance or the area of administration“he maintains Lucia.

For experts, improve the level of Profits of a micro entrepreneurship it implies optimize and enhance each of its areas. “From what commercial until human ResourcesIt all adds up, “says the professional coach.

About, from lucía mentions seven aspects fundamental to achieve that a micro entrepreneurship be profitable:

1- Identify what is the value of your micro-enterprise

The value provided by a micro-enterprise is essential to grow profitability

First of all, it should be borne in mind that the concept value“it is abstract, so several Business They leave it to their own interpretations and priorities.

“The reality is that when a micro entrepreneurship understands the concept of value in the proper way ignites the heart of your deal and assures your cost effectiveness“, He says from lucía.

And he adds: “The value it is not something the company adds. Is not the price, is not a discount or a little additional service, nor add something extra to the product; this is one promotion. The value of a micro entrepreneurship is simply the product or service that the company offers its clients and for which its customers the value and as a consequence they buy

Something that often happens is that many companies sell blindly, unaware of their True value, and are “crushed” by the competition Because they know your product or service, but they don’t know what the value is.

“They look so much inward, towards the cost effectiveness and towards the balance, who forget to look at their customers and the value that they offer their lives with their products or services“, remarks Lucía.

Therefore, it is essential to consider three questions to identify the value of your micro entrepreneurship:

  • one) How does your life improve client you product or service?
  • two) Than problem you solve your client with your product or service?
  • 3) Why does your client buy from you and not from the competition?

“Must be focus in speaking in terms of the clientdo not use your wordsYou must understand what is happening to him and speak like him / her. Exercise is putting yourself in your place consumer and live the experience “on the other side of the counter”. For that you must release your wishes and look straight at the reality to understand and improve your results, “advises the organizational coach.

In conclusion, knowing the value of the product or service being offered will allow to get better the communication of brand, the sales (commercial discourse) and keep the stability in times of crisis.

“When you know your value and you differential you can adapt even better in the most challenging times. Know what is the value of your micro entrepreneurship provides solidity and strength. The goal is not to be profitable, the goal is to be valuable. Is that once you understand and deliver your value to the world, the money comes as a consequence, “he summarizes from Lucia.

2- Prioritize the long term over the short term

A micro-enterprise that projects in the long term has more possibilities to grow its profitability

A micro-enterprise that projects in the long term has more possibilities to grow its profitability

One of the secrets for the growth of a micro-enterprise, and therefore its profitability, is the reinvestment. Few are the micro-enterprises that earn 100 and reinvest 100, for the next month earn 125, and so on, says the expert.

“Those who have the capacity to resist the temptation to spend the Profits, they have an important plus in the profitability and growth of the business. He effort Today will be your greatest achievement tomorrow “, he recommends from lucía.

So part of the gain obtained by micro-entrepreneurship should be used for reinvest and another part can be devoted to a contingency mattress.

Is that for more business plan that we have in our micro entrepreneurship, exist contingencies, crisis international economic and pandemics, which will take us by surprise.

“Life is constant movement and our business too. We can plan many things but in the company, as well as in life, there are imponderables. The crises shake the stability of the deal and many times kick the dash of the cost effectiveness“highlights the coach.

Based on this, the decisions economic government shift or some external factor may affect the profitability of our micro entrepreneurship and it is something that we cannot control. Therefore, to improve our profitability and avoid surprises, it is recommended to have a “mattress” to deal with contingencies.

3- Solid leadership and committed teams

Leadership is essential to lead a micro-enterprise to grow

Leadership is essential to lead a micro-enterprise to grow

They do not exist profitable micro-enterprises without a person who has devised and carried them out. He leadership is part of the strategy of cost effectiveness of a business.

“He product plus valuable within a company is your Leader. The value of the leader is transferred to each of the decisions that build the bottom line of an organization, “he says. from lucía.

For the coach, the cost effectiveness of a micro entrepreneurship It is not the result of a good sale, a good business, or an isolated act, but it is the Outcome of the sum of Good decisions and habits of work throughout the period.

“He success is totally related to the leadership and with work teams committed with the results. It is the reflection of people who invested their energy to make a nice job“he concludes.

Ultimately, excellence is a standard of work that extends from the leadership to all areas of the micro entrepreneurship and is reflected in the quality of the products, services and, above all, in the experience who lives client.

So care should be taken to confuse excellence with perfection. “Perfection is the lowest standard because it just doesn’t exist,” he concludes. from lucía.

4- Ba good pricing strategy

Setting a price for a microenterprise is not only a matter of cost, but of value provided

Setting a price for a micro-enterprise is not only a matter of cost, but also of other key aspects

It should be noted that there is a great difference between putting prices and have a strategy of prices.

Most of the micro-enterprises they make the mistake of putting prices according to cost and do not take into account other aspects.

For example, this occurs when a “business A” has a cost of 10 pesos and puts a price of $ 20 on the product, and if a “micro-enterprise B” has a cost of $ 5 and sets a price of 10 pesos.

“The point in this reasoning is that products they are not related. A good strategy of pricing not only takes into account the cost, takes into account the perceived value by the customer, and the relationship between each product or service offered to enhance the cost effectiveness as a whole, “he explains from lucía.

That is, the lack of trust by the leader of a micro entrepreneurship itself transferred to its product or service, “can cause me to put low prices because you think it will improve the competitiveness“indicates the coach.

So it clarifies that the differential price is short-term profit but untenable in the long.

Thus, many micro-enterprises to find a differential in the price lead to lower performance of your product or service and enter a downward spiral of quality, sales, image brand and cost effectiveness from his micro entrepreneurship.

“What for price comes, for price goes, is a reality that we must accept. The objective once again is not to sell expensive or cheap, it is to give a according price to the value that we deliver and will be accepted by customers “, details from lucía.

5- Trust in our product

Trust is essential to grow the profitability of a micro-enterprise

Trust is essential to grow the profitability of a micro-enterprise

Another point to consider is that the commercial leg is key in a good strategy to increase the cost effectiveness of a micro entrepreneurship.

“In general, Business they blame circumstances and context for not selling, but the main reason why a business sells little is because they have a strong sales ´tibia´ “, describes the specialist.

And complete: “That kind of micro-enterprises It has a sales force that lacks determination when selling. The sale have notoriety and many companies lose opportunities due to this ´tibieza´ when it comes to offering what they do. ”

Fear of to sell we can analyze it from different perspectives, as there is prejudice of the “scammer seller “, the natural fear of the human being and saying “no” to something and, last but not least, the lack of trust of the seller. Or, even, the lack of faith in itself or in the product / service it offers.

“Let’s release the prejudice and the insecurities to have the courage to offer our value to the world. Our product improves the lives of others, whatever our micro-enterprise is dedicated to. So why deprive others of a good that we can do for them? I think it’s time to change the look of the sale of ´take money´ for the ´offer value´ “, summarizes from lucía.

6- Boost sales on social networks and increase profitability

Many sales are channeled through social networks, increasing the profitability of micro-enterprises

Many sales are channeled through social networks, increasing the profitability of micro-enterprises

One of the ways of increase the cost effectiveness of a micro entrepreneurship is to increase sales. For this we must take into account that the social networks they have ceased to be just an entertainment space to also become trading platforms.

“Today you can have your Online store in Instagram. The most effective way to boost your sales on social networks is to show your strength. The network sales It is not about showing your product or service as if it were a showcase, but a place to deliver your value to the world “, he details from lucía.

Many independent professionals have seen in Instagram the opportunity to boost your sales and increase your income with New customersBut the problem is that they want to achieve it as they did in the last century.

“Social networks are not the new Yellow PagesNor is it a compilation of achievements. No one cares how well you are doing or all the medals you have earned. People will just follow you and want to establish a link with your micro entrepreneurship if you give them a real reason to do it, and the reason is to help them in some aspect of their lives with your courage, “sums up the professional coach.

This applies to both psychologist, a business selling shoes or a accounting study. In all cases, people “will measure your value in each of your posts and will continue to connect with you if you show them that you are valuable to them “he adds.

To finish the idea: “Nobody follows anyone for charity, and less than less do they buy a product or contract a service for that reason.”

The concrete thing is that today users they are increasingly clear about what they want to acquire and, more than ever, they want to see what a micro entrepreneurship promises to offer in his product or service.

“He mouth to mouth and the recommendation from some friend have lost strength compared to trust which is generated in social networks, even without knowing each other personally “, sentence from lucía.

Seen from the side of the micro entrepreneurshipToday there is the opportunity ideal to meet and connect potentials customers and talk to them.

“If you want to increase your sales, replace the old one focus group from the 90s and begins with the polls on instagram. Today you will have a feedback direct in each of your interactions that will allow you to improve your product or service and, therefore, deliver more value and boost your sales, “concludes the specialist.

7- Increase sales from marketplaces

Sales by marketplace have increased significantly in recent months, generating greater profitability in micro-enterprises

Sales by marketplace have increased significantly in recent months, generating greater profitability in micro-enterprises

The marketplaces are online sites that connect different providers and applicants through Internet.

You can find hundreds of marketplaces in the world, both in products and services, but some of the ones that stand out the most are: Amazon, ebay, AliExpress, Free market and Airbnb, among others.

One of the main advantage for the micro-enterprises is the possibility of accessing a level of traffic much larger than with a ecommerce own or your Web, both nationally and internationally.

“Keep in mind that visits from a marketplace how Amazon are billions per month, and in the case of the most prominent sites in Latin America is more than 500 million monthly visits that may or may not become sales for suppliers who have their products or services published on the platform, “he details. from lucía.

Just as millions of people enter to buy there are also millions of micro-enterprises looking to sell your products or services.

“It is important not to believe that the platform will do everything for us. It will give us the tools and an audience eager for consumption, but the challenge as a business is to be able to differentiate our product or service from the competition, “summarizes the coach.

So the business skill and the Customer Support On the part of the micro-entrepreneur, it must be revealed at each step they take to try to be more profitable for their business.

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