Often times you come across wide-ranging topics regarding entrepreneurship. Some of the most common ones revolve around what to do when you want to achieve certain things in business. For instance, “how to conduct an effective digital marketing campaign”. The possible areas of focus, the possible angles or perspectives are so many that at times you do not really know what is genuine or not. In some cases, the steps to be followed are way too many and intricate. With that mind, I thought it would be expedient to discuss herein a simple 3-tier business formula. If you really grasp these 3 components that I shall be discussing you will definitely excel in business. In essence, these are 3 areas you must prioritize and synergize to start, run and scale any business successfully.
It might seem like when one speaks of the importance of marketing people think it is cliché. Not only is it timeless but it is even most important now than ever before. You should be glad because this area has been significantly made easier due to the proliferation of the internet and social media use. This is augmented by the fact that there have been remarkable innovations in the two domains I just mentioned i.e. the internet and social media. That does not, however, relegate traditional marketing approaches to the back. It is wise to bundle together every possible and available means of marketing – leave no stone unturned. The profit margin you realize on any goods or services you sell can be a sole result of just effective marketing.
I would encourage you to acquire as much knowledge as you can on digital marketing. Get acquainted with elements such as email marketing, social media marketing, and content marketing in particular. Never assume that people know about your goods and services. Do not be stingy on the amount of money, human and material resources you invest in marketing. Conduct marketing always as if you are starting out. Especially now you cannot afford not to – the perceived costs you assume will be too steep if you invest in marketing will be nothing compared to the losses you will incur by not investing in it.
After all, due to progress made in technology virtually anyone can now start a business. It is no wonder why it is commonplace these days to encounter fierce competition in any business venture. To edge past competition and establish your brand authority you will need marketing as your weapon.
Innovation is paramount in this digital age that we find ourselves in. If you fail to innovate you will seriously trail behind those who do. If I am to define innovation in my own way I would say it is the redefinition of old ways of doing things or the synthesis of old ways into new ways of doing things. Innovation should not be a once-off event but a perpetual cycle. In principle, if an innovation is good enough it will usually lead to more innovations. Most of the reputable big companies in the world today came to be because of innovations. Even further, they have continued to scale and spread wider due to their consistency in innovation.
Let me give one local example of innovation so that you get the picture. We have produce stalls such as those at popular places like Mbare Msika right. Instead of people having to go there physically to get their fresh produce you can create an online platform where they place orders and you deliver to them. That is how innovation was used to give birth to the Fresh In A Box business. Consider old, traditional or usual ways of doing things then figure out how you can come up with new ways. The crux is usually to make things more efficient and faster – this tends to involve the use of software or various types of technology. Innovation mostly increases your value proposition or unique selling point as a business. Earlier on I talked about edging past your competition; innovation can help you do that.
Financial management is no doubt an important component in doing business. Particularly of specific importance is cost management. Cost is a huge determinant of the ultimate pricing of your goods or services. If you fail to properly manage costs you will be left with no room to competitively price your items. Consider ways in which you can reduce or eliminate costs altogether. There are numerous ways in which you can do this e.g. outsourcing instead of having in-house services. If your business involves sourcing supplies and the like then look for ways to bargain so that you get the things you need cheaply. These are just some few examples on how you can strive to keep costs at bay.
The bottom line is, one, make sure you know your costs – all of them. Secondly, monitor them and keep them in check. Think of the competition I alluded to earlier; imagine if you could tone down your costs yet still providing quality products. That would translate into alluring prices making your sales volumes and margins shoot through the roof.
So these are the 3 ingredients necessary for you to blossom as a business. Figure out how you are going to blend them together for your business – do not generalize; tailor for your own business. If you were to represent these 3 ingredients as a formula you would say, P = M+I+C. That means if you add marketing, innovation and cost management together you get profit.