How Things Automatically Fall Into Place When You Stop Worrying About Revenue?
By being too much concerned about your monthly earnings all the time, you tend to put your business in danger.
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Look around and you will find almost every entrepreneur around you is obsessed with a thought of what their competitors are doing or how much they are earning. They are constantly digging for more information. It is good to be inquisitive and analytical so as to be able to measure your progress and performance against others in the market.
However, an important thing for such entrepreneurs to know is that it can actually be counterproductive to be overly concerned with others' businesses. The same goes for your concerns with your revenue. By being too much concerned about your monthly earnings all the time, you tend to put your business in danger.
Here are some reasons as to why and when you must stop worrying about your revenue:
1. You just stepped into a new market
Stop worrying about how much money you or your competitor is raising if you have just entered a new market. Instead, focus on delivering an excellent performance so as to be able to create a lot of value for your clients by virtue of products or services you offer. Arrpitt Gupta, Co-founder Medism, shares how the revenue was least of the concerns for his company during first six months of its operation. Medism happens to be one of the leading medical tourism companies of India. To begin with, its only focus was on offering high-quality services and that too, at the best possible rates in the market. The strategy served them well and helped them won several loyal clients over a period of time.
2. You can't afford to lose your customers
Because you are newer and younger, your focus has to be on customer retention. Losing customers to competitors can be catastrophic. By making customer retention your topmost priority, your focus tends to shift from revenue to offer superior solutions. As long as you succeed in offering great solutions, there will be no dearth of clients. In fact, it will result in new business for you. Even more, when savvy customers will conduct research looking out for solutions you offer, they will inevitably find you.
Ayaz Zanzeria, founder of Zanzeria Family Consultants (OPC) Pvt Ltd (a start-up offering unique content development services and personal wealth management solutions), recalls he started his business with only 2 clients. "My commitment to clients from day 1 has helped me retain both these clients till date. It was only through word-of-mouth references that I managed to upscale and compete for big business," Ayaz stated confidently.
3. Brand building is significant
Even though you can't succeed by allowing your business to run into losses every month without making any profit, there is another important realization to be made. In order to climb the ladder of success and reach an acme in your career, you need to build a brand or in other words, a market for your business. In order to make this happen, you need to have an effectual marketing strategy in place. That is, you need to spend a significant part of your earnings on marketing in order to make customers aware of your existence.
Ayush Jain, Business Development Executive at Girnar Global International Education Consultants, has a marketing strategy in place for his business that focuses on spending 12-15% of the revenue being generated only on marketing efforts. Thus, by focussing on accumulating more and more wealth, your growth will become stagnant and it might not yield any positive outcome in the future.
Business ethics are most important in maintaining and sustaining a formidable venture. "It was much cheaper manufacturing PVC pipes with an inferior quality raw material, but to retain the brand name and be fair in practices, we opted for the superior raw material, thereby raising costs and lowering profits," admits Ashish Gupta, head honcho at Reva Enterprises.
The decision to behave ethical is a moral one and to be a long run survivor in the market, this practice must be deep embedded in the company value system mandatorily. This might involve foregoing some percentage of revenue, but the benefits in terms of legal and moral obligations are manifold.
5. Employee growth and retention
Richard Branson very well defines the importance of employee over revenue," Clients do not come first, Employees come first. If you take care of your employees, they will take care of the clients."
Providing employees both personal and professional growth opportunities (though it might be at the cost of revenues), enables them to relate to the company fundamentals and hence aid in employee retention. When employee turnover rate is high, it's detrimental to the organization in terms of loss of productivity as well as the new recruiting costs.
Mr. Anil Aggarwal, owner of a highly labor–oriented brick kiln unit shares his philosophy, "To be successful in the long run, the unit has to maintain a productive and positive employee environment to be able to retain the best employees in this era of cut throat competition.