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 in its essence. It seems everything is clear here – profit is the positive difference between income and costs for the production or purchase 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, it may happen that in general no one will buy anything. Why? Because, in fact, profit is the difference between the costs of producing or acquiring 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 above its price.
The difference between value and price is the real profit. It can be artificial profit when the price is assigned without reliance on real value. The product, the price of which takes into account the real profit will be sold well. The product, the price of which takes into account artificial profit, will be sold very poorly, because it has a low value.
The older the product, the less 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 weakly distributed, it has a high value, because it increases the value of a person in whom it is embedded through a product, it makes it more perfect compared to other people.
If the idea has already been circulating for a long time and the product that many people have personified it, then it doesn’t increase the value of the person who owns this product. Therefore, all the leading global companies are engaged in the constant introduction of new ideas. They need them in order to raise the real value of their goods and sell them dearly.
Modernization of ideas is the only way to have real, not virtual profits and, accordingly, a profitable business. When there is no product that has a high real value, there are numerous problems with the sale of goods. The cost of solving these problems often becomes so high that the old product is easier to destroy.
In order to facilitate the work on the dissemination of new ideas in order to create new values and make it cheaper, 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 markets feel confident.
All others are under constant threat of bankruptcy or sale. Among the latest examples – Nokia, Volvo, concern 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 the idea. It takes root in one person or a certain aggregate of people who then form the market. In other words, a market is a collection of people in whom this idea is implemented. Of course, the classic presentation on this score contradicts this presentation, but the times when the classic presentation worked have already passed.
Now there are completely different times that require different ideas. These ideas need to train all employees, if you want to have a profitable business. Only workers with modern ideas can make a profit, because only such workers can work in the real, and not in the fictional market.
The key to having a profitable business is the presence of a personal market, built around some idea and the availability of relevant specialists. Only when there are specialists who are ready to work in the present, and not invented by the market, can one conduct effective work. And, of course, there must be this very idea.
There are 4 types of ideas that may underlie the market: personality, product, business and the market itself. These ideas can be singled out with the help of the personality, product, business and market legma, respectively. Also with the help of legmas you can deeply pump up the idea of the market in order to start broadcasting it, which ultimately will lead to the expansion of the market.
If the company produces cars, then you need to look for the idea that underlies this market. Reflections suggest that this market is based on an idea that may sound like “mobile movement in space”. The car is the embodiment of this idea, just the opportunity to realize this idea – to move in space.
… the job in the market is to develop the idea behind it