5 principles to grow a successful business

Successful Business – At present, you can grow your business without any degree or certificate. You need not do an expensive MBA degree to establish or grow your business. You can establish and grow your business without formal education only by self-education. 

Many people dropped out of school and college, yet they are successful businessmen. Examples are Dhirubhai Ambani, Steve Jobs, Bill Gates, Michael Dell, Mark Zuckerberg, and Jan Koum.

I am not saying that you take a drop from your school and college and start a business. What I am saying is you need practical knowledge and not a theory that is taught in school and by the college. Colleges do not make successful people they only accept them and take credit for their success.

This article is not about self-education, it is about five principles to grow a successful business. Any business needs 5 basic things –

• Value Creation
• Marketing
• Sales
• Value Delivery
• Finance

If any of these is not available in business, then that is not a business. If a business can not create value it is a hobby and not a business. If you can not market things that you are doing as a business it will be a flop. If you are not getting sales in the business it would be non-profit. A business that has less value delivered than customer expectation is a scam. If finance is not managed in any business that means it becomes non-profitable and it will get close. 

So to run a profitable business, we need to understand all principles.

5 principles to grow a successful business

#1 Value Creation 

Can you create something that people want to buy? Because most people buy things only for two reasons –

Convenience

It means if your product or services help them to do their work easily, quickly, with flexibly then they will buy your product. The best example is OLA’s growth in India. Ola offered the same that people wanted. Their service is easy, quick, reliable, and flexible.

They provide service according to people’s needs.  

High-Fidelity

It means that your product is attractive or maybe attached to the emotions of the people or helping people to get high social status. If your product is offering anything like this people will surely buy your product. 

The best example is Apple’s ecosystem. All products of apple are attractive and offer high social status. 

All over the world people have only these two reasons to buy things. So the first point is very important. Your product should create the value that people require. 

#2 Marketing

You can not do any business without marketing. You may have a very good product but your product should reach the right audience. You should grab the attention of people through marketing.

When Apple launched its first iPod. Then they said, this is not a device, this is a collection of songs in your pocket and that was very attractive to people.

Marketing means is to get the attention of people with a remarkable and unexpected message. Marketing should be remarkable and unexpected.

#3 Sales

Sales is the main part of any business. People buy a product that they trust. Particularly in India, whenever we want to buy something we ask a lot of people, maybe friends, or relatives about the product or service. We also check reviews on YouTube, Amazon, and Flipkart.

This means we want social proof that this product is good. So to increase sales of your product, you need to generate social proof.

#4 Value Delivery

This means if you deliver more value than what they expected, then they will become your advertiser themselves. They will become marketers of your business themselves.

For example, Domino’s Pizza launched an offer at the start, that pizza will be at your home in minutes, if not then you will get that pizza for free. Now, Domino’s always delivered pizza late. So, that, they can give pizza to customers for free. Customers always like Free Piza at their doorstep. It is one type of value delivery.

This was unexpected for customers, that they are getting a lot of free orders. They used to market that today I got Domino’s Pizza for free and this way Domino’s Marketing was done.

Successful businesses don’t deliver less value than customers’ expectations. They always want to give good service to their customer.

#5 Finance

For any business cash flow is important. You can not run a business without cash flow and without managing finance. You need to remember one thing Cash IN should be always more than Cash Out. It is mandatory to run and grow your business.

So these are the 5 principles to grow a successful business. If you want to know more about business or learn high-income skills you can e-mail me at sk@moneyexcel.com.