How do enterprises make profits?

How to break through the profit bottleneck has always been an eternal topic. If an enterprise wants to break through the bottleneck of profit, it must overcome many things, and the most important thing is to establish a very complete system.

We should realize the profit of enterprises and learn how to choose how to connect with the market. I often hear many entrepreneurs trying to describe to me "I want to learn to do one thing, I want to do it …" But there is a very important question here. Have you seriously thought about whether this thing is profitable or not? What can be done and what must be done are two different issues. Sometimes you often find that we can do something, but that doesn't mean we should do it.

Now many private enterprises have done many industries, only to find that most of them do not make money. Therefore, we need to analyze whether the enterprise can achieve long-term profitability and the profitability of these selected projects and customer groups.

For example, a clothing company I taught in Shenzhen had only 60 million yuan in 2004, and by the end of 20 10, its sales had reached 65,438.02 billion yuan. Why does this enterprise earn so much money? This is because we have chosen a very important market segment. Under my guidance, this company chose the most fashionable and richest people as its customer base. As we all know, among clothing consumers, middle-aged women are the most likely to cause impulsive consumption and pay very readily. These customers have the highest wealth and are trying their best to help their husbands spend money. Moreover, women in this age group have low self-confidence and need to decorate themselves with beautiful clothes. Grasping the psychological characteristics of this consumer group, it was implemented in the national market, and the size design was slightly larger, which made customers feel just right, but the design adopted the characteristics of youthfulness. Because the point of cutting into the market is very good, it has achieved great success, which just shows that we should learn to do profit analysis.

In enterprises, sales managers and general managers like sales very much. I also agree with this very much, because for enterprises, sales volume is the most fundamental problem. However, in enterprises, whether vertical or horizontal, it costs money. Everyone is familiar with Nippon, which has hundreds of products, but there is also a paint company in India. Although their paint has only five basic colors, the company's products are also very good, because it has chosen a very important market segment. This actually tells us a truth: enterprises need to focus their limited energy on more effective labor.

Therefore, enterprises must manage, management is, performance should be done, and financial guidance should be done. To be an enterprise, you need to have a language, and now the popular business language in the world is the financial language. Don't talk to the boss about the hard work in the enterprise, just talk about credit, and this credit is finally reflected by financial data. Enterprises are working hard for financial data, and both bosses and employees are working hard for the same goal, which is the goal orientation of enterprises. In short, it doesn't matter what you do, the most important thing is the result orientation.