The Denver Business Journal recently featured an article touting what it calls the three basic principles for building a business.
The article states that much of the information available today on building a business simply doesn’t apply to small-to-midsized businesses because it was procured by leaders of giant corporations or scholars who have never actually owned or operated a business.
So, what are these three key principles, you ask? They are:
- Attracting more customers.
- Getting existing customers to become repeat customers.
- Increasing profits per transaction.
As you can see, the three principles are far from cutting-edge but the article said that simplicity is key when it comes to building a small business successfully, especially for solo entrepreneurs.
In order to do these three things, the article said it’s important to take a marketing approach that works for a business of your size. Instead of launching a “generalized” marketing campaign that works for the Fortune 500 companies, the article said it’s best to attract and maintain customers with targeted and “tightly focused” marketing.
When it comes to driving up profits, the article said to use existing customers as a “test bed” for new ideas and products. If these innovations seem to work, then roll them out to the masses. Up-sells should also be used to maximize profit whenever possible, the article stated.
Although these three steps seem simple, they require a small business owner’s full attention. That’s why it’s wise to work with a business law attorney for the legal matters that arise as a business grows such as employee concerns, investor relations, real estate leases and protection of intellectual property.
Source: Denver Business Journal, “The ONLY three ways to build a business,” Laura Stack, Oct. 14, 2014