Profitable!!! To become sustainable, a company has to be profitable and in the present context, all the uncertainties are there to put pressure on the leaders. Have the right idea and wait for it to pay off! Any leader should make their company profitable as quickly as possible, after spending time, energy, and money. And this is not the least of the options.
profitability
A word with the pungent taste of coffee that resonates on your (without sleep) nights. Profitability … about a mole. In any case, a fundamental concept in any investment. It expresses the ability of a company to generate income from the resources it uses. Making money quickly with your business is a guarantee of efficiency for any leader. To an investor, it represents an outcome. It should come as no surprise that the young companies that are launching want to reach the holy grail at all costs and move past the breaking point.
find a business model
All manufacturers would like to ensure the future profitability of their business before launching. But… “From my point of view, there is no potential insurance! explains Céline Valentin, who provides financial expertise and business coaching within the Coesia company. “For most companies, the business model changes during the first months, facing the field and the reality. The customer position has to be reviewed, the product has to be improved. Financial expectations are changing… and so does the profitability. Is! “. However, the business model cannot be secondary to your company. To be successful, the business model must synchronize revenue, value proposition and organization. The interest of the business model is to give a global view of the way the company generates value. Hence it addresses the strategic, marketing and financial aspects. Ghislain Bonnet, former manager of CGMA, a company specializing in training, explains, “A good business model, or how to make money from your business, is a combination of several business models so that it adapts to a built-in proposition and a relevant strategy.” , skill assessment and coaching. The business model defines how you make money, but also how your company will work to earn it. It depends on both your customers and your means of production. For example, a business model based on a B to C relationship will be profitable more quickly than a B to B relationship, because purchasing decisions are made for individuals faster (or not) than on large corporate accounts. Is. On the other hand, it is easy to make a business profitable quickly by starting with a small group of consumers naturally attracted to the concept, product or service. Mass selling involves a marketing and sales approach. From the point of view of the means of production, increasing its profitability requires arbitration between alternatives, for example, subcontracting, which is quick to establish but whose cost price of the service or product is high. ,
Take care of your “attitude”
If the business plan represents a tool of communication to the various interlocutors and partners of your company, it is initially a tool of work and internal communication for the producer and his entire team. It has followers who update it every six months and miscreants who are blocked by its lack of agility. What is important is not how it is written, but the forward thinking of the project you want to launch and that is an integral part of the future profitability of your box. Think of it as a compass. Or the female voice of your GPS that you program initially. So imagine a sexy business plan – while remaining realistic! Celine Valentin recommends upstream work on the entrepreneur’s vision. “The function of the vision is to give direction. It is the source of inspiration for the entrepreneur and all the stakeholders of the company. It is the vision of the entrepreneur which creates the future profitability of the business. It is based on their passion and gives them a direction. ” Thanks to the business plan, you determine the various contributions and capital structure of your company. You mature your project taking into account all the avenues, orientations available to you, strategic vision and market study. Then come the numbers. To check the profitability of your project, you need to keep an eye on three tables: the financing plan that deals with requirements and initial resources, the income statement that sums up the difference between income and expenses, and the cash flow table that lists the money flows. does. Compare your profitability with companies in the same sector, using the relevant financial analysis ratios according to your field of activity.
Stand out
The urge to become profitable quickly will drive you to innovate in different areas from your competitors by drawing attention to your services or products. Some sectors have wind in their sails among young start-ups. “The ones that are most easily financed are often in the areas of green and sustainable energy, social networks, mobile applications and pharmaceuticals, a sector that is increasingly open to competition,” explains Céline Valentin. For these, Ghislain Bonnet says: Shared ownership, personalized services, low cost. “The list is long no matter what one says. You can always “find your” good idea, have fun and make money” he analyzes. There is no miracle solution! Specializing in these branches can be a profitable strategy because they are promising. However, be careful. Stay tuned, to check that your offer actually matches a need or market. To do this, observe customers and learn to understand their expectations, their philosophies and their values. By facing the market, you can articulate your ideas. Will adapt it according to the ground reality.