Most profitable companies operate from one of two models: either they sell a lot of inexpensive products to a lot of people or they sell a few big-ticket items to a more limited buyer list. Neither model is easier or inherently better than the other. What’s more important than choosing is having a defined plan for monetization. Knowing how you’ll make money from the start will prevent wasted time spent hoping that something profitable will come together for you.
3. Be the best
There are plenty of mediocre products out there, but the odds are good that these companies aren’t making a million dollars or more during their first years. If you want to hit these big potential profits, you’ve got to bring something to the table that wows customers and generates buzz within your marketplace.
How can you tell if you’ve got a “best in breed” product? Look to your current customers. If you aren’t getting rave reviews online or positive comments sent to your inbox, chances are your clients aren’t as ecstatic about your product as they need to be to hit your target sales. Ask your existing customers what you can do to make your product better and then put their recommendations into place. They’ll appreciate your efforts and will go on to refer further sales to you in the future.
4. Hire all-stars
Hitting Sh.1 million in revenue during your first year is no small feat, and you certainly aren’t going to achieve this goal with a team of underperformers. Yes, hiring these people will be cheaper and easier, but you’ll pay for this convenience when your end-of-the-year sales numbers come up short.
Instead, you need to hire all-stars, and the fastest way to do this is to ask around for referrals. Pay particular attention to the sales hires you make, as these key employees stand to make the biggest difference in your business’s bottom line. Get them on the bus and then encourage them to do whatever is necessary to close deals (pro tip: a good series of incentives won’t hurt!).