Why not always more sales, generate more profits? How to choose business ideas that are really profitable? Why does an entrepreneur fail in a business where others only reap wealth? What is the true concept of "financial success" in business? How do I prevent a "brilliant" Business Plan from leading to economic failure? How do I get more profit from the business I already have? How do I get out of the “bump” where I am, with less sales, less liquidity and more competition in the market?
These and many others are the concerns and questions that the entrepreneur and the entrepreneur ask themselves every day, when they want to achieve more sales, more profits and more wealth in their businesses or companies.
Which business is more profitable? In which business can I invest my money? It is one of the questions that I get asked the most when I offer conferences and also the most frequent that our readers send us.
By the way, the most frequently asked question is: How and where can I obtain financing to turn my business idea into a company? But in this article we will talk about something else, we will talk a little about how to determine the profit potential of a business idea.
This is fundamental and basic, before you start looking for financing, before you start looking for business partners, before you spend money on a formal Business Plan.
Business experts fail to achieve the goals they long for, despite having all the knowledge and often even the resources to undertake.
The failure rate is impressive in new ventures; But also many companies fail with five, ten, twenty or more years of having started operations. Even companies that were successful at some point in their history fail.
There are many causes of failure in business. Many are simple entrepreneurial mistakes, others are really caused by the economies or characteristics inherent in the product or business. Another because of the "aggressive" competition of the new global economies; But many other causes have their origin in the entrepreneur's “incompetence” to change on time, to know how to choose, to know how to make the right decisions at the right time.
Many failures arise because the entrepreneur did not find out in time that his product or business was no longer profitable, or because he lost profit potential. Many times, the equation of financial success simply stopped working or the economic engine of the company stopped working.
But those who start out also fail, because they lack solid business plans. Although those who did “the task” also fail, that is, they studied the market, planned the company, prepared a “Professional” Business Plan that may even have been scrutinized by banks and investors.
In thirty years accompanying and advising hundreds of businessmen in the most diverse economic activities, the speaker and business consultant, I have seen many entrepreneurs fail because they simply "were deceived by their business plan."
The “Earning Potential” Conference presents in a summarized and practical way the five tools to measure the Earning Potential of a Business Idea. These useful and practical tools can be applied to the analysis of any business idea and any business in progress.
Before investing time and money in a market study, looking for investors and even making a Business Plan, with which the entrepreneur usually “justifies” his venture beforehand, applying these tools will allow him to be a little more objective and cool about of the true profit potential of a business idea.
These tools can also be applied to businesses in progress, to determine why a business stopped being profitable and to look for opportunities for improvement in the business or in the products it offers to its clients.
The five practical tools presented in the Potential Earnings Seminar are intended to support the decision-making process that allows the entrepreneur and the entrepreneur to start businesses that generate more sales, more profits and more wealth.
These are the 5 strategies to measure the true profit potential of a business idea:
- Measure the sales potential of the business. Determine the contribution margin of the product. Determine the required break-even point. Establish the total investment capital. Determine the potential cash flow that your business will have.
The application of these tools is a logical sequence that forces you to investigate to know and obtain enough information about the business idea you are considering. It is not a Business Plan. Likewise, the tools can be used for a new business idea, for the entrepreneur who is looking to start their first business; but they are perfectly applied to ongoing businesses, to measure new products to be incorporated, new branches, expansion to other countries, new facilities, new machinery, etc.
