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The “grow at any cost” business model has been popularized over the past decade, with innovative technology companies at the forefront. Writing red numbers for years has become fashionable Jeff Bezos insist that long-term investments in future growth are more important than quarterly sales targets. But for every success story by AmazonThere are hundreds, if not thousands, of failed attempts to replicate the same model. These companies Soft bench (Since they are known regardless of whether the famous conglomerate is reversed or not), they seem to fail much more often than they fail.
Softbank founder and CEO Masayoshi Son recently called his investment in WeWork “stupid”. At the moment we all know the history of WeWork’s demise. The popular joint venture’s estimate fell from $ 47 billion to just $ 2.9 billion a year.
But smart business leaders don’t stop there … they’re looking for the reason for the tailspin. In the case of WeWork, focusing on getting the basics was a failure. WeWork said so, and former CEO Adam Neumann once said that energy and spirituality are better measures of success than sales and losses.
Image: Adam Neumann / Photo credit: VCG | Getty Images
With some spectacular corporate mistakes behind us (and WeWork, OneWeb, Wag, and dozens of other once-known companies are having problems when they’re not yet dead in the water), a new generation of entrepreneurs is emerging.
The point is that this so-called “new” breed is not that new.
The things successful entrepreneurs focus on today are actually incredibly old. Customer experience, customer service and profitability have been the main tenants of the business since the industrial revolution. Softbank companies have turned their backs on fundamentals and have failed as a result. When entrepreneurs focus on sales and key figures again and build a strong foundation, they end up sounding fresh and innovative. The saying goes that those who don’t study history are doomed to repeat it. These “new” entrepreneurs have studied the history of successful business practices and are repeating them with spectacular results.
What are these restored business philosophies?
A solid unity economy is the key to solid business. If it costs you more to win and serve a customer than the customer will spend on your business, your business simply won’t. Mathematics never lie. Los Angeles businessman Blake Johnson has been preaching this consistently and loudly for years. Johnson’s businesses range from small business finance (currency capital) to consumer orthodontics (byte). Johnson is described as “obsessed with business models and metrics” and believes that all profitable companies have 95% of the same DNA. He prescribes that companies need to have some key elements to successfully cross the magic threshold of profitability, and based on your track record you may want to be careful.
In a 2017 article, he encouraged entrepreneurs to stay simple and focus on three important things: cash flow, costs, and cost-per-acquisition (CPA) metrics. “The final measure of a company is whether it offers a product that people buy on a scale large enough to be profitable. You can spend months or even years building your base and preparing for success. However, if you cannot attract customers and sufficient income to exceed your total costs, you will need to change this plan. Stubbornness will never serve you well.
A company that has been in the red for years is walking the tightrope. Companies that do not adapt to the needs of the market face failure. s who continue to be successful know that sales and metrics are the most important aspect of a business and focus primarily on profitability.
2. Customer experience
If your company doesn’t offer a positive customer experience, they will go elsewhere. In this way, the customer experience is a precursor to profitability. Please note that customer experience is not synonymous with customer service. The customer experience relates to how easy it is to buy your product or to relate to your company. Everything your customer demands should be seen as an entry barrier, and smart business owners expect a loss of lead at every stage. Therefore, it is beneficial to create a buyer’s trip that is simple, smooth, and positive.
Marketing Director Jes Kirkwood summed it up nicely when he said: “The customer experience is one of the two central pillars of customer loyalty. The point is that you can’t grow if your customers don’t stay. “
3. Customer service
Converting a new customer always costs more than maintaining an existing customer. For this reason, customer service is incredibly important. A strong focus on customer service can build loyalty and cause a person to increase their individual spending on your brand. By pulling more value from existing customers, the drive economy is working in your favor. Once you recoup your customer acquisition costs to make them loyal, they only spend profit.
Taylor Chastains USB storage directly He said: “All departments in our company implement customer service in some way, regardless of whether they speak directly to the customer or not. For example, if something goes wrong when ordering a customer, our customer service team goes straight to the processing department to fix the problem as soon as possible and satisfy the user. If the processing department is not motivated to satisfy our customers as much as our customer service team, troubleshooting would take much longer. This would frustrate and make our customers unhappy, which is bad for the entire company and not just for our customer service department. “