Profit is The 6th Floor of Business. Do You Know The First 5?
Knowledge that can save millions of businessowners who are in a trance and are being misled.
This is the 132nd consecutive post on MrEmogical Notes. If you’ve been following this series and are finding value from this blog/ newsletter, please consider sharing this post with one person who you feel needs to read this for their betterment.
Introduction
How would you react if you ever come across someone who’s about to learn how to drive a car and they think/ believe that they’d like to start driving for the F1 within 30-40 days of training?
Depending on your nature/ the person speaking to you/ your mood, your reaction may vary, but I’m pretty sure your reaction to this (unreasonable) thought process wouldn’t be too supportive.
That’s pretty much how I feel every time I try talking to a new business owner/ freelancer/ coach and the only aspect they want me to focus on is the silver bullet that will solve all problems of their life/ business (according to them).... “How to make tons of profits?”
I’m writing this post mainly for those people who are so lost and don’t understand the absolute basic fundamentals of business and explain to them that profits are the sixth step of any business, but now that you’re here, I’m sure even you will appreciate the six steps mentioned below.
01 - Ideas/ products/ solutions/ results
A team is just as strong as the weakest link and similarly, a business is just as strong as the strength and merit of the business idea (and how effectively is that idea converted into a product/ service that is ready to be sold.
Without this first step, you don’t have a business and no business = no profits
02 - Audience
Once you have a product/ service designed you need to start talking to the world about what you do, what problem you solve, what gaps have you identified in the market, how does your product solve the stated problem(s).
The most effective way to do this is through content marketing.
No content = no audience = nobody to sell to = no profit.
03 - Community
The best way to explain the community aspect is to imagine a movie.
It’s (for lack of a better word) immature to say/ think that every movie is made for every cinephile/ audience member.
Every movie is presented to the market at large but is created for a specific set of audience. The genre, the budget of the movie, the marketing buzz created determine that while most people interested in movies know about the release of the film, but the community that would definitely enjoy the genre more than others are excited to watch the movie at the earliest.
Similarly for your business, you will have to find ways to find (and build) a community of members who are most likely to buy from your business, sooner than later.
In business parlance, community is also referred to as your target customer/ TG / target group (of customers)
No community/ target customer = trying to sell to everyone in the market = high customer acquisition costs = low/ no profits
04 - Brand
Now that you’ve started building a community of like-minded people from the market who understand the tonality of your business, who understand what problems your product/ service promises to solve, this is the stage when you start putting in conscious efforts towards getting your brand name registered in the subconscious minds of your TG.
No brand = comparison between your product with other alternatives available in the market (by your TG) = the business getting split between you and competition = low profits.
05 - Trust
Once you have identified your TG and started building your community, now is the time to nurture this community. Answer questions, ask for ideas, get feedback at every step, ask them if they would be interested to buy a product that solves the problems being discussed.
When done right, this is when a business gets an overwhelming response to sales.
Looking back at the example of movies, a good movie from a reputed studio with a star cast of audience favourites manages to recover the entire budget of the project within a few days of the release.
This is the power of trust in the minds of the target customer.
No trust in the minds of the target customer = low/ no sales = low/ no profit.
06 - Transaction = Profit
At this stage you have two options.
Either show me if there is another way to create “a lot of profit” sustainably, in the long run without going through the aforementioned 5 steps.
However, if you and I are now on the same page, I’m sure you’ve understood how profit is the 6th floor of any business and I don’t need to take more efforts to expand on this point, anymore.
Conclusion
Do you now see how fundamental and obvious this process looks?
On the contrary, I hope even you’d agree that someone wanting to enter the world of business only with the intention of making profits will miss the ball on the first 5 counts and hence the want of profit will end up being an unfulfilled pursuit for such a business owner.
However, your dedication to read this note till the end shows me your dedication to your business and hence, I’m certain you’re in for the long haul.
Brace yourself for a lot of hard work followed by a lot of (rightfully earned) profits.
Your Thoughts!
If you feel you’re absolutely lost or if you feel you need more clarity with your niche/ positioning/ your personal brand/ your content strategy and would like to consult with me for the same, feel free to reach out to me and let’s connect.
If you’ve reached till this point of the post, I’m sure you must have some thoughts/ feelings/ opinions about what you’ve just read.
I’m done sharing what’s on my mind, and now is your turn to share your POV.
Tell me how you are processing the information that you’ve just read?
Do you agree with my thoughts?
Do you think I missed something important?
Do you disagree with something in particular?
Let’s continue this conversation (or ask your questions about the post) in the comments below.
Keep Going Keep Growing 🚀
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Share this with them, help them and earn your blessings.
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Prompt used to create the image for the note
P.S.: Image made on Meta AI using the prompt, “Imagine a business owner welcoming walk-in customer into the store”