Crack Profit Model Magic Bureau

People always say that some industries are profiteering industries.

Every entrepreneur seems to be thinking of the same question: how can we effectively improve the profits of enterprises? Why do we earn money to cover the cost? Although profit margins of all walks of life tend to be equal due to the profit driven nature of capital, why do some companies always have amazing profit margins?

make money

Internal cause is the decisive factor in the development of things, and external cause is the condition for the development of things.

The development of things is the result of the comprehensive action of internal causes and external causes, while external factors affect the direction, speed and specific process of the development of things, and play a special important role under certain conditions.

Entrepreneurs must learn to assess the situation, and when managing enterprises, we should first focus on the environment.

Because background environment is often the most important external force in the process of enterprise development.

First of all, the substances used by enterprises.

The second is human resources.

For enterprises producing knowledge products, talent strategy is very important, and the talent market is the main battlefield.

Having a unique team and firmly taking the initiative in a niche market is often the key to the success of these enterprises.

As long as we retain our talent team, we will keep the company's high profits.

The third is the market environment.

During the period of SARS and the prevalence of influenza A, almost all pharmaceutical cold medicines will be sold out.

When the society is stepping into the aging stage, the nursing home is bound to be "hard to find."

What entrepreneurs need to do is to observe the needs of the market. Keen and unique vision is a skill that a successful entrepreneur must possess.

High profits exist in these invisible industries, depending on who can dig them first.

The last thing to consider is competitors.

When all the conditions are available, the profits of the enterprises are closely related to the strength of the competitors.

In the face of a completely competitive industry, do not have any illusions about making money. Entering such an industry can only be a failed experience.

If an enterprise is in a fully competitive industry, it is time for the leader to consider leaving the industry and looking for new profit growth points.

Open the magic cube of profit

Enterprises entering the free competition and low threshold industries can not earn money; if they want to enter the profiteering industry, it is really harder than going to the sky. After breaking into the so-called "profiteering" industry, we find that losing money is much easier than making money.

Internal causes are internal contradictions of things, and they are the basis for changing things.

Therefore, avoid eating in a bowl looking at the pot. Your industry is the industry you know best. Unless fully demonstrated that the industry is heading for death, if not, it should dig out profits from others.

Every entrepreneur wants to make his own business get high profits, but profits are like Rubik's cube. It looks very easy to combine the same colors. It can really start to find out that the magic behind the magic cube is often at a loss.

Let's look for the answer to the magic of profit from the following ways.

First of all, we should try to be oligopolistic enterprises.

In the communications industry, why are mobile phone operators mostly making money, while the manufacturers of mobile phones do not make much money? Why do they make profits in the aviation industry, and most of the airlines that provide services seldom earn profits? In such queries, the former is mostly oligopoly while the latter are basically in free competition industries (Table 1).

Second, we must work hard in cost control.

There is a simple law (table two): each cost reduction of 10% can create a 100% profit.

So why do we all say that the aviation industry almost has to lose money in the United States. But Southwest Airlines still makes money when oil prices rise sharply? Why does Hongkong's Cathay Pacific [18.82 3.63%] always have a good profit? China's spring and Autumn Airlines sell almost unacceptable fares of other airlines, but why do they still have substantial profits? And so on, similar problems will be solved, and the high profits of these enterprises are closely related to cost control.

From the point of view of external environment, it is necessary to engage in industries with low cost and less influence by external factors.

Why is the container terminal always good profit in the shipping industry? The profit of shipping companies often fluctuates greatly. The former cost is fixed, and the latter is more complicated by the economy and other factors.

The influence of external environmental factors, such as economy and natural environment, is unpredictable in the course of business operation, and the internal cost of the company is controllable. Therefore, the industries that are less affected by external factors hold the initiative in the hands of the enterprises themselves.

In addition, enterprises should have the right to speak in the industry value chain (Figure 1).

Why do developers in the real estate industry make money most of the time, while construction companies do not have much profit? Why are there many large clothing sales companies in the world that do not have similar garment production enterprises? Why do not there be particularly large agricultural production enterprises, and there can be large grain processing trade enterprises? The following smile curve may answer the above questions.

In the course of business, enterprises should choose the business with knowledge content and technical content. These businesses are the source of high profit, and the simple processing business can not be regarded as the main business.

After growing up to a certain stage, enterprises must believe in the power of capital.

Why today's capital pfer is becoming easier and easier? But the average profit of every industry is getting farther and farther away from reality. This is the power of capital.

Assets management is equivalent to addition, while capital operation is multiplying.

If the addition and multiplication work together, enterprises will naturally become bigger and stronger as snowballs.

In addition to mergers and acquisitions, capital operations include profits from listing and financing and the sale of effective assets.

When capital is used, money seems to be easier to earn.

Last but not least, if an enterprise has mastered the sales terminal, it will master everything.

Why are world-class retailers becoming more and more popular, and the producers of consumer goods are becoming more and more helpless? The reason is that retailers have mastered sales terminals.

No matter what product, the product that can let consumers pay the bill is a good product, and mastering the consumer undoubtedly firmly grasps the initiative.

Those who are familiar with and skilled in using one or more of these ways must be the best in the market and industry.

While these successful companies gain high profits, their own growth genes are often "steal away" from other competitors, because they are difficult to imitate, and they already have their own brands and culture, because they can not buy them, because these resources and experience can not be obtained from the market; they are "untangle", because the resources and capabilities of enterprises are complementary and separate from them, so they can not only reflect value but also "take away", because the resources of enterprises are organized, personal technology and talent can be taken away, but the core competitiveness of all resources formed by integration of enterprises can not be taken away.