October 28, 2021 | 3-minute read (572 words)
Starting a new business is universally challenging, and no two businesses are the same, But there are commonalities among how successful new business owners approach tasks and clients management regardless of their industry or domain.
Here we’ll look into three businesses that reached profitability in a short time span, as cited by the U.S. Chamber of Commerce. Their strategies can be replicated but consider the advice of an expert for fields in which you are unfamiliar.
Bookshop.Org, New Masters Academy, and FitVine Wine are the three enterprises that serve as examples on how new business owners can do things right.
Lean is in
Bookshop.org launched with enough cash to last for eight months of operations with four employees on staff. Under this scenario, the business managed to attain profitability in three months. The owner swears by his plan to keep the business lean for turning a profit.
Tap into consumer-centric demands
Bookshop.org tapped into consumer interest in local business owners and suppliers, and their desire to support them. FitVine Wine owners delved into the consumer psyche of fitness and health consciousness and accepted their partner’s suggestions to expand. New Masters Academy ,on the other hand, curated and created a vast library of images and artwork that made people pledge support to them even before they had opened themselves to the public.
The optimal cost
Bookshop.org has become known for its policy of giving away 75% of its profit to local bookshops, authors and publications. This helps the business to land good PR and sways people to do business on their website. Likewise, while FitVine Wine’s model was originally direct to consumers, when they decided to enter the retail market, the main force behind them was former customers acting as their de facto sales team, pushing ahead revenue. New Masters Academy makes sure that the fees and subscription it charges for its classes are worthy.
Meeting the client
The owners of FitVine Wine, Mark Warren and Tom Beaton, advise using the right marketing channels, meaning meet customers where they shop or where they are. Tapping into outlets where customers already exist is always recommended, they say. Ensuring good customer service means that people will come back, as explained by Bookshop.org staff. On the other hand, New Masters Academy made sure its platform was a launch and gathering site for artists’ even before the site itself launched.
Bookshop.org used word of mouth, press and social media campaigns as its main prelaunch marketing strategy. They got good PR, and this PR in turn helped them get good business from people who wanted to help the greater community during the pandemic.
New Masters Academy incentivized early customers to subscribe through its online marketing campaign. The business relied heavily on Facebook and email updates that featured artworks by its instructors along with free tips.
FitVine Wine attained profitability in 3.5 years, just as it had planned. The owners’ objective of being in DTC first and then moving into retail fostered brand loyalty as well as brand promotion by its users.
New Masters Academy, in an effort to build a user base and encourage early adopters, loaded the site with artworks, images and 3D models. This in turn sweetened the deal for many users who found it an easy step up when the website went live, and they had to decide whether to enroll.