- PRICING STRATEGY: PRICE SKIMMING!
- PRICING STRATEGY: GIVING YOUR PRODUCT/SERVICE FOR FREE
- SHOULD WE COMPARE OURSELVES?
- WHAT SHOULD WE MEASURE WHEN WE EVALUATE OUR MARKETING EFFORTS?
- WHAT IS THE VALUE OF A CUSTOMER?
- DOES CONTENT MARKETING WORK?
- WHAT IS THE DIFFERENCE BETWEEN A BRAND, BRANDING, A PERSONAL BRAND AND A COMPANY/PRODUCT NAME?
- WHAT IS GROWTH HACKING?
- HOW MANY « P » CAN BE FOUND IN THE MARKETING MIX?
- THE CUSTOMER VALUE CHAIN
- HOW CAN YOU PROTECT YOUR UNIQUE PRODUCT OR SERVICE?
- CONFERENCE ON FINANCING - MAY 2, 2017
- WHAT IS DRIP PRICING?
- WHICH AMOUNT SHOULD YOU CHOOSE FOR YOUR PRICES?
- DETERMINING YOUR HOURLY RATE BASED ON THE VALUE YOU THINK YOU HAVE
- IS LOWERING YOUR PRICES A GOOD IDEA?
- TO OFFER OR NOT TO OFFER FINANCING?
- HOW TO PROTECT YOURSELF AGAINST EXCHANGE RATE RISKS
- WHEN IS A GOOD TIME TO INCREASE YOUR PRICES?
- DEMAND BASED PRICING
- WHAT IS A LOSS LEADER?
- HOW TO ORGANIZE A DRAW THE RIGHT WAY?
- HOW TO HAVE REMOTE EMPLOYEES
- IS IT GOOD TO BE FIRST IN A MARKET?
- THE THREE TYPES OF CUSTOMERS
- EXPORTING TO MEXICO - QUERETARO REGION
- DEFINING BUSINESS SUCCESS
- ARE YOU USING REBATES? WATCH OUT FOR THESE
- IS THE CUSTOMER ALWAYS RIGHT?
- EXPORTS AND QUEBEC COMPANIES
- COWORKING SPACES
- YOUR PLACE OF BUSINESS AND INTERNET
- WHY IS SOCIAL MEDIA IMPORTANT FOR YOUR BUSINESS?
- HOW TO USE FREEBIES
- WHAT IS THE MAGICAL FORMULA FOR HAVING SUCCESS IN BUSINESS?
- DO YOU HAVE EXPERIENCE IN MY FIELD?
- WHEN CAN WE STOP OUR MARKETING?
- WHAT IS A CALL TO ACTION?
- WE ARE ALL SALESPEOPLE; HERE'S HOW TO GET THERE
- HOW CAN MARKETING AND SALES COLLABORATE?
- HOW TO SELL MORE TO YOUR EXISTING CLIENTS
- WHAT IS CROSS-MARKETING?
- WHY SHOULD I SEGMENT?
- WHO IS RESPONSIBLE FOR MANAGING YOUR COMPANY'S IMAGE?
- HOW TO CHARGE FOR YOUR PRODUCTS / SERVICES?
- HOW TO DEFINE YOUR PRICING STRATEGY: PRICE POSITIONING
- HOW TO DEFINE YOUR PRICING STRATEGY: MARKET PRICING
- WHAT PRICE SHOULD YOU SELL AT? - COST-BASED PRICING
- WHAT IS A PRODUCT?
- HOW TO MARKET YOUR NEW BUSINESS?
- IS BUYING A FRANCHISE A GOOD WAY TO START A BUSINESS?
- HOW SOCIAL MEDIA HAS CHANGED WORD-OF-MOUTH
- HOW SOCIAL MEDIA HAS CHANGED PUBLIC RELATIONS
- WHAT IS BRANDING?
- WHY INCREASING SALES IS NOT THE SOLUTION
- HOW TO SELECT YOUR COMPANY NAME?
- WHY HAVING A WEBSITE IS ONLY THE BEGINNING?
- WHAT IS MARKETING?
- HOW TO MAXIMIZE THE VALUE OF YOUR SOLE PROPRIETORSHIP BUSINESS
- WHY SELLING IN MEXICO?
- LOW COST MARKETING INITIATIVES
- WHY IS PRODUCT DIFFERENCIATION IMPORTANT?
- hOW TO PRESENT OUR COMPANY
- WHAT IS THE DIFFERENCE BETWEEN MARKETING AND PUBLICITY?
- 50% OF YOUR ADVERTISING BUDGET DOES NOT PRODUCE AS MUCH AS THE REST
- RIGHT SELL AND OVER DELIVER
HOW TO DEFINE SUCCESS?
When doing my MBA, I learned that one of business’ measures of success was profit maximization. Of course, this generalization has limitations such as: the opening of new markets, introducing new products, research and development, capital investment, training or increased labor force. All are very positive actions for the company but may have short or medium-term negative effect on profitability. However, profit maximization is one way to determine success.
If I have learned anything in the past 25 years is that one of the important lines in financial statements is the profits line. Why? If your company's business model is based on commissions, the difference between gross and net sales can be significant. In addition, there are all the costs associated with achieving these sales to consider: office, travel, representation / solicitation fees, etc ...
So in fact, if your company is in this situation, you could be selling $ 1,000,000 at 10% commission rate less your various fixed costs and have a profit of $ 15,000. What is more important? The sales value or your profitability?
Of course, we are all in business for a variety of reasons:
- Make money
- Make a difference
- Have a better work/family balance
- Have more freedom
- Realize a vision / an idea
- Absence of work in the field or of a particular market
- Etc ...
Why is all this important? Because by clearly identifying the reasons why we are in business, it becomes easier to determine the indicators of success and thus understanding if we are on the right path. If you want to make a difference on a group of people and you measure your profitability, you may be disappointed with your results.
How do you determine your indicators? Want to make money? Profitability should be near the top of the list (much more than sales). You want to reach people? Having a database of people you have helped is much more important than your profitability. You have an idea in mind and you want to realize it? Commercial success is a good measure, but so is also to see our idea take shape, test it, refine it, etc .... Is having more freedom important to you? Are you able to travel more thanks to your business? See more locations? Have more flexibility with your work schedule? If freedom is important to you, you must clarify how you define freedom.
This article wants to be another opinion on the different “success” ideals I often see on social media: obtaining wealth. The images that are associated with success are often luxury cars and lavish homes. From time to time, we see the beautiful beaches as the "office". I think success in business can certainly include these objectives, but it is not exclusively defined by them.
What are your motivations? What prompted you to start a business?
Looking forward to reading your comments.
Stéphane Elmaleh-Riel, B.Ed., MBA