Business Rules: There are no business rules until you say there are.

Nishani - January 15, 2022 - Advice

1. 𝙃𝙤𝙬 𝙘𝙖𝙣 𝙮𝙤𝙪 𝙨𝙘𝙖𝙡𝙚 𝙮𝙤𝙪𝙧 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 ?

Why would somebody choose you over hundreds of other people.?

Literally no system or no process in the world can help you scale except trust. We can only scale with trust. So the most important thing is how can we build trust. Building trust is not that easy. Only when somebody sees you over and over again hundreds of times that is when the trust is built.

To build trust you need to appear in front of the relevant audience multiple times so that they see, consume your quality content/product/service enough to trust you. See how large brands build the trust. They keep showing you their ads everywhere you go or maybe the banner, commercials, the internet. They are all over the place. So no one can scale without building trust.

How To Gain Customer Trust?

1. Make a great product or service
2. Show your company values
3. Create strong relationships with customers
4. Be transparent
5. Help customers solve problems
6. Showcase positive customer reviews and testimonials
7. Maintain your company’s reputation

So no tool or no system in the world can help you to scale your Business, but trust can.

2. 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗶𝘀 𝗮 𝗴𝗮𝗺𝗲 𝗼𝗳 𝗺𝗮𝗿𝗴𝗶𝗻 𝗮𝗻𝗱 𝗻𝗼𝘁 𝗩𝗼𝗹𝘂𝗺𝗲𝘀

We learn this very late in our life! Always everybody will advise to focus on doing volumes and don’t go with margins and somehow we all are always conditioned to go for volumes in order to make more money.

In any business, selling Products or services, we will be focusing on ways to increase volumes for more profit. But this will just increase a lot of problems for us.

How?

1. Low margin equals to where less room for error

2. You have to constantly compete on price

3. When your product or service are cheap, people do not consider you as a quality seller.

4. Anyone can charge a lower price and get you out of the market

5. One small mistake can get you lakhs of rupees in losses

And literally, when we are doing this we will be increasing our headache because of all the above reasons. Also we have to manage so many things. Because the larger the inventory size the more stuff we need and a bit bigger operational things we need, so our management cost also increases significantly.

I understood business is not a game of volumes, rather it is a game of margins very later.

When you have a solid good margin

1. You can produce a better quality product or service

2. Give your client more services

3. Can hire amazing staff who is talented

4. Can use the tools to improve the business efficiency

5. Can even have room for various experiments

When we change our business model going from volume to margins we were able to create a better quality business, better business model, and with less number of things to manage we were able to make more profit than what we were doing in volumes.

𝗧𝗵𝗶𝘀 𝗶𝘀 𝘁𝗿𝘂𝗲 𝗶𝗻 𝗮𝗹𝗺𝗼𝘀𝘁 𝗳𝗼𝗿 𝗲𝘃𝗲𝗿𝘆 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝘁𝗵𝗮𝘁 𝘄𝗲 𝗱𝗼 𝘄𝗵𝗲𝘁𝗵𝗲𝗿 𝗶𝘁’𝘀:

Serving the clients

Selling any products or services

So, always try to focus on delivering more value and playing on margins than volumes.

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Nishani

I’m Nishanth Muraleedharan aka "Nishani" and I know that I have come into this world with a clear purpose and mission: • To help people to have financial freedom & more free time by doing Internet based Businesses. I've been involved with Internet based businesses for over 18+ years now. Some of my inspiration comes from Jeff Bezos, Elon Musk, Mark Zuckerburg, Sergey and Larry Craig