The Right Strategies to Build a Profitable Business

Do You Need a Unique Business Idea?

Just tell me one thing, what unique business idea exists today? All business ideas you can think of are already taken, there is no novel business idea that exists today. Well, if you are an innovator or an inventor you might be able to build a completely new product and start a business but most people are not leaders, they are just followers. Therefore, if you want to start a business you will have to start with the same idea that has been tested hundreds of times. The first smartphone went on sale in 1994 it was called Simon and was manufactured by IBM. iPhone was launched in 2007. iPhone itself was not a new product, it copied IBM's device. However, Apple copied the idea to become not only the world's biggest smartphone manufacturer but also the world's biggest company. Interestingly, the IBM device failed. Why did they fall despite being the first company to manufacture the smartphone? The key to succeeding in the business is continuous improvement in the product and marketing. It does not matter whether you are selling the same product that a lot of businesses are selling, what actually matters is how better is your product compared to other similar products.

Building a Business: How to Choose the Right Strategies

If you want to build a business, you need to choose the right strategy. What exactly is the right strategy?

Imagine you want to make $1000. You have different three ways of doing this.

You make a product that you sell for $1000.

You make a product that sells for $100 and you sell 10 units.

You make a product that sells for $10 and you sell 100 units.

Now, you need to decide what kind of business you want to do, whether it is a $10 business, a $100 business, or a $100 business. Your decision should be based on a number of things.

The $10 business can be easily started, it takes some time to create a $100 business, however, creating a $1000 business involves a lot of hard work and takes a lot of time to materialize.

The $10 business has a low risk, and the $100 business has moderate risk, however, the $1000 business is highly risky.

If your business is selling a $10 product you will have to sell a lot of units to make substantial money, however, if your business is selling a $1000 product, you can make substantial money by selling just a few units.

Choosing the business should always depend on your resources, your target, and your risk tolerance level.

Buying and Selling Business: New Way to Build a Fortune?

Buying and selling a business is one of the easiest ways to build a fortune. You build a company or a business, and then you sell it. The one who buys the company builds it even bigger continues with the company or sells to another person for higher profits. A lot of businesses you see today were built in this way.

Youtube is not the business Google actually built, it was created by Steve Chen, Chad Hurley, and Jawed Karim. These three guys had previously worked for PayPal. Paypal on the other hand was created by combining two companies Confinity and X.com. X.com co-creator Elon Musk sold his stake in the company and went on to build Tesla. Tesla was not actually started by Musk, he put the money that he made from Paypal and went on to become the owner and CEO of Tesla. Facebook owns Instagram and Whatsapp, these are not the businesses Mark Zuckerberg created, but now he owns these businesses.

So you see, a lot of big businesses are built by buying other businesses.  In the future, buying and selling businesses will be even more common.

If you have the skills and knowledge, you can start building a business now, and who knows in the future you also become a billionaire.

How to Build Multiple Businesses

eCommerce is not the only business Jeff Bezos has, he also offers cloud services, devices like Alexa, Kindle, Fire TV, Streaming services, etc.

Microsoft is not the only company Bill Gates owns, Microsoft Corporation owns a lot of companies, for example, LinkedIn, Skype, Mojang, GitHub, aQuantive, and ZeniMax. Bill Gates does not only sell Windows software, he also sells Minecraft games, he also makes money from social media companies like Linkedin and Skype.

Warren Buffet’s company Berkshire Hathaway owns multiple businesses.

If you have a business or if you want to do a business, you should always keep in mind that you need to build multiple businesses. I don’t mean to say you should start multiple businesses at once, what I mean is you need to keep in mind that you will be building multiple businesses.

So, how do you do that? In other words, how do companies build multiple businesses?  

The answer is simple, they buy businesses.

Linkedin was created in 2003, and Microsoft bought the company in 2016.

Youtube was created in 2005, Google bought the company in 2006.

Instagram and Whatsapp are not Meta’s (Facebook) original products, the company bought these platforms.

Tesla was not the company Eon Musk founded, he invested in the company and then owned the company.