How to build a profitable business
The goal of any businessman is to have a profitable business. In order to build such a business, you need to know what profit is inherently. It seems that everything is clear here – profit is a positive difference between income and expenses for the production or acquisition and sale of goods and services. Accordingly, if you want to make a profit, you need to increase this difference.
But if you increase the difference, then it may happen that no one will buy anything at all. Why? Because in fact, profit is the difference between the cost of producing or purchasing and selling goods or services and the value of these goods and services. In other words, a profitable business is when the value of a product is higher than its price.
The difference between value and price is real profit. There may be artificial profit when the price is set without relying on real value. A product whose price includes real profit will sell well. A product whose price includes artificial profit will be sold very poorly, because it has low value.
The older the product, the lower its value. The value of a new product is higher than the value of an old product because the product is basically an idea. When this idea is poorly distributed, it is of high value, because it increases the value of the person in whom it is introduced through the product, it makes it more perfect against other people.
If an idea has been circulating for a long time and a product that many people have embodied in it, then it no longer increases the value of the person who owns this expensively. Therefore, all the world’s leading companies are engaged in the continuous implementation of new ideas. They need them in order to raise the real value of their goods and sell them expensively.
Modernization of ideas is the only way to have real, not virtual profit and, accordingly, profitable business. When there is no product that has high real value, there are numerous problems with the sale of goods. The cost of solving these problems often becomes so high that it is easier to destroy an old product.
In order to facilitate the work of disseminating new ideas in order to create new values and reduce their cost, the world’s leading corporations create markets, their own markets. Having your own market is an absolute competitive advantage. As practice shows, only companies that have their own markets feel confident.
All others are under constant threat of bankruptcy or sale. Recent examples include Nokia, Volvo, PSA. The first were sold first to Microsoft, and then to the Chinese, the second and third were immediately sold to the Chinese. They had to be sold for the reason that the products of these companies did not have their own markets.
At the heart of the market is an idea. It is introduced into one person or a certain set of people who then form the market. In other words, the market is a collection of people in which this idea is implemented. Of course, the classical representation in this regard contradicts this representation, but the times when the classical representation worked have already passed.
Now completely different times are coming, which require different ideas. These ideas need to be trained for all employees if there is a desire to have a profitable business. Only employees with modern ideas can make a profit, because only such workers will be able to work in the real, not in the invented market.
The key to having a profitable business is having a personal market built around an idea and having relevant professionals. Only when there are specialists who are ready to work in the present, and not a fictitious market, is it possible to conduct effective activities. Well, of course, this idea should be.
There are 4 types of ideas that can underlie the market: personality, product, business, and the market itself. These ideas can be distinguished with the help of the legram of personality, product, business and market, respectively. Also, using legrams, you can deeply pump the idea of the market in order to start broadcasting it, which will ultimately lead to the expansion of the market.
If a company makes cars, then you need to look for the idea that underlies this market. Thoughts suggest that the basis of this market is an idea that may sound like “mobile movement in space.” A car is an embodiment of this idea, just an opportunity to realize this idea is to move in space.