How to Maximize Your Profit as a Solopreneur
By Lewis Humphries
In many ways, advancements in technology and business practices have ensured that operating a commercial venture from home is far easier than in previous generations. Whereas the most difficult challenge facing entrepreneurs in the 1980’s and 1990’s was how to fund a start up and turn their vision into a profitable business, today’s solopreneurs are confronting an entirely different set of issues.
The fact remains that it is now possible to trade and start a business from home with little or no capital, and this has saturated the market with a vast number of online stores and traders. So while e-commerce may be an easy market to enter into and establish a business, the challenge facing today’s entrepreneurs is how to maximize their profit and stand out from their competition.
3 Tips for Success: Optimize Your Online Venture
So how do you turn revenue into profit as a solo entrepreneur? There are several tips that you can follow, each of which can improve the structure of your business while delivering a greater return on your initial investment. Consider the following:
Focus on Quality Rather Than Quantity:
It is all too easy to confuse making a profit with generating high turnover, as it is always quality rather than quantity than drives a successful business forward. It is far better to grow your business and revenue organically, and focus on maximizing the profitability of each individual unit sale. A business that generates $100 a day can be infinitely more profitable than one which makes $1,000 in the same period of time, as your margin is defined by your initial expenditure and overhead costs.
Source Quality Wholesale Suppliers:
With this in mind, it is clear that the cost of manufacturing, purchasing or shipping your goods must be kept to a minimum in order to establish high profits. Wholesale traders or firms that purchase and resell liquidation stock are often the lifeblood of small and independent businesses, as they afford them the opportunity to buy in bulk and make significant financial savings. With many of these outlets also offering discounts on low minimal order quantities, they are ideal for home start up ventures.
Develop a Fair and Considered Pricing Policy:
For any profit that your business makes to be sustainable, there must be significant value in the resale price that you charge to consumers. It is easy to become preoccupied with margins when reselling products, but any discounts that you are afforded through wholesale purchases must be shared with your own customers. Make sure that your retail price allows you to make a sizeable profit while also helping the consumer to make savings, as this will create a loyal customer base and help your business to make money over a longer period of time.
The Bottom Line
These tips will allow your e-commerce venture to flourish over a significant period of time, and also help to lay the foundations for securing and retaining long term custom. Such business practices are therefore crucial to helping your venture to outlast its competition, and can be integral to its survival within a bustling and competitive market place.
Lewis Humphries is a writer for SiiCClothing, in addition to being an entrepreneur and blogger with a passion for small business starts ups and e-commerce. To uncover more about fashion e-commerce and the benefits of using genuine wholesalers, visit SiiCClothing today.