3 Most Profitable Business Strategies for 2021:- There are so many different types of businesses. And it is true that some businesses are just way more profitable than others and really you want to shoehorn yourself into the more profitable business ideas rather than the least profitable business ideas. I’ve just really put up here the number one reason that some businesses are more profitable than others is they have a high margin and there’s a quick rule on this high margin thing. It’s what I call the times five rule. So if you’re buying a product for a pound you need to be able to sell it for five pounds. People go oh my god, you’re ripping everyone off! Well, let me just go through and explain why we’re not ripping anyone off here.
If you buy something for a pound, you sell it for five pounds, roughly a pound of that’s gonna be of that. Roughly a pound of that gonna is on your staffing. Roughly a pound of that’s gonna be on your operational overheads. A pound of that gonna is for the product so that’s just a measly20% profit for you. And in reality, there’s gonna be more and more excess taken away from you there. So try, try your absolute hardest to make sure you’ve got the highest possible margin.
Don’t think that if you’re buying in something for a pound and selling it for one pound 50 or two pounds that you’re making loads of money because the excess is gonna steal all of that gross profit before you actually make a net profit. So in effect, you want to make sure you’ve got the highest possible gross profit so that you have a chance of making a great net profit. Let’s move on. Number two is finding a business that’s profitable is making sure it’s leveraged. Now some business owners have unleveraged work and some have leveraged work. You see, I’ve written loads of books. They’re leveraged work, i.e., I do the work once and get paid forever.
I make a book, I get it put on the Internet, and I sell it and it keeps on working for me. Other businesses are what I call the set the stall business. Every morning you’ resetting out your stall. Maybe you’re a market stall. You’re setting out your stall. That’s unleveraged work. You repeat the work every single day to make income. You need to try and find leveraged work because if you’re always forcing yourself into the setting the stall mentality then you’re never gonna have time to do higher profitable tasks like marketing, going getting customers because you’re forced to always do operations.
Try and make sure you choose a business that’s leveraged in terms of your time and you’ve got a far better chance of making that more profitable because you’ll have time to go and do profit-making tasks. Let’s move on. The next thing is love, want, and need. If you can find a business that where people love, want, and need it, you tend to find it’s gonna be way more profitable than the businesses that just have two of these elements and most businesses do have just two of these elements.
You know, going out to a restaurant. Yeah, people love to go out and eat, they want to go out and eat, but they don’t need to go out and eat. They can eat at home and therefore it’s a discretionary spend. Whenever you’ve got discretionary in your business you tend to find it’s not as profitable as the ones that don’t have discretionary.
So let’s look at the iPhone. People love their iPhones, they want an iPhone, and they would absolutely say they need an iPhone now to operate and live. So you’re to find this love, want, and need. It’s why I love childcare, day nurseries. They love their childcare, they want their childcare because they’ve got to go to work. They need their childcare. It follows love, wants, and needs. So try and find all three of those elements in your business. I got some examples now of some businesses that I’ve discovered the most profitable when I’ve worked with business owners over the last few years and spoken at tons of seminars speaking to business owners. Let’s look into it. Here they are. Insurance brokering, I’ve always found this is really good business. It’s a business that’s not discretionary. People know they need insurance.
Here are the things as well. If you do a really good job as an insurance broker that client just renews with you every single month and that’s really powerful. So look for insurance brokering types of businesses where people repeat buy from you. Commercial property, again, leveraged work. You build a commercial property or you buy a commercial property. You put a tenant in and they pay you every single month, very profitable. Also education, training, and consultancy. Think about private schools, day nurseries, these types of businesses where people pay you regularly. Same with consultancy businesses and training businesses. They’re renewed customers and they know that they need to have this stuff. People want their children to be educated.
They’d love for their children to learn how to read and write. They want them to have great jobs. They need them to do this stuff. It follows love, wants, and need. It makes it therefore far more profitable. It’s not discretionary. And care homes and senior living, that’s another great example. There’s sort of my snapshot into profitable businesses. I’ve got this one last thing that I want to share with you on profitable businesses. Avoid businesses that start from zero each month.
This is just so stressful for you if you’ve got to go and find customers each and every single month. Far better to like my commercial property, insurance brokerage example, you find a client and they buy from you continuously and they keep buying from you as long as you deliver great customer service. Look for those types of businesses. They’re usually always more profitable. They might be a bit harder to build but hey, it’s well worth it.
- Most Profitable Business Strategies
2. Most Profitable Business Strategies
3. Most Profitable Business Strategies