Profitable businesses: ideas to achieve the success of your brand

If you are thinking of starting a business, surely you are wondering what are the profitable business in 2022.

Also, those who already have a business in operation are interested in knowing how they could improve your results to increase your profitability.

That’s why we’ve put together this guide to profitable business: to help you answer these questions (and many more) that relate to the different stages of creation, improvement and consolidation of a business that gives good results.

We hope that it will be very useful to you and that it will serve to enhance your success story. Shall we start?

What is a profitable business

A profitable business is one that generates more income than expenses.more profit than loss, and that is where all the people who want to set up a business point to.

As we said above, to achieve this, it is first key to develop the business concept, that is, the different ways in which the company can create value and compete in the market. And how is it done? From an idea.

This idea usually arises from a real need of consumers that today is not being satisfied. For example, buyers who want to purchase clothing made from reusable fabric because they are in favor of caring for the environment and fair trade, and cannot find a brand on the market that meets their needs.

There is then a idea that can be converted into business. There is, then, a niche that can be occupied by a brand.

To create a successful business concept and thus aim for a profitable venture, it is ideal to meet 4 requirements:

There has to be a consumer group willing to buy the product at the offered price.
Ideally, the market it must be large enough to support the business and generate profits.
The person in charge of the trade has to differentiate his business from that of the competition.
also have to be able finance your businesseither personally or through other funding sources.

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How to start a profitable business

The first thing you have to do to achieve a profitable business in Argentina is develop a business conceptthat is, define the product you are going to sell, investigate the profile of your potential clients, detect who your competition is, how you are going to finance your project, among other things.

This means that the planning it is key to starting a profitable enterprise, and it is expressed through a business plan.

A business plan is a fundamental guide for all people who want to start selling products both online and offline. It provides a clear direction and understands both the strengths and possible weaknesses of the proposed business, and allows various aspects of the future brand to be analyzed.

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Types of profitable businesses

There are different ways to offer what you want to sell to your potential customers, the decision will depend on the style of business you want to create and its objectives. In general, we can highlight 6 types of businesses that generate profitability.

We are going to explain each one of them with some examples so that you can be inspired and define what style of business to start.

1) Craft production

This type of business is one of the oldest in existence. Consists of the transformation of raw materials into products made 100% by handsometimes with the help of simple tools.

These articles are made one by one, that is why it is said that none is the same as the other: They are unique pieces from start to finish and bear the author’s stamp.

In general, craft production is carried out in small quantities and is aimed at a small audience due to the level of demand and time involved in the production itself.

For example, the Tiendanube sells its products made of ceramics, wood and other materials produced manually, and is responsible for telling its potential customers in the !

And this is how he presents them in his Tiendanube:

However, there are cases of brands that produce handcrafted products but have an important production team that can often support large quantities of orders, although it is not the most common.

2) Serial production

Unlike the craft, mass production involves the manufacture of homogeneous productsthat is, with the same characteristics among themselves, on a large scale and with the intervention of industrial machines.

In this way, the production of articles is much faster and less laborious in physical terms. In addition, the times are considerably optimized and this allows to cover a greater demand within the market.

This type of business is what the Tiendanube carries out, an ecommerce of sweets that does not stop growing:

In order to be more competitive, it is recommended that the product in series has some differentialsome feature that makes it stand out from the rest so that it doesn’t get lost in the sea of available options.

This type of serial production usually occurs a lot in the fashion industry, mainly in the so-called fast fashion (fast fashion), where clothing and shoes take the lead.

It is worth noting that, in recent years, different fashion brands have joined the movement (slow fashion) which, in contrast to the previous one, involves the manufacture of garments made from environmentally friendly materials, respecting production times and based on fair trade.

Finally, it is important to mention that there are cases in which businesses that manufacture their own products (both traditionally and industrially) and sell directly to the final consumer, Generate a higher profit margin than other types of businesses, being many times more profitable than the rest.

3) Buy-sell

The purchase and sale of products represents a good option for those brands that want to market items, but not manufacture them.

Production, both artisanal and industrial, involves investments such as labor, special workspaces, machinery and another series of characteristics that, in the business of buying and selling, are already resolved.

In this way, the brand only has to focus on how to sell those products.

Usually these brands and that’s why they get wholesale prices. Then, to those values they add their profit (and other costs that we will detail in the next section) to calculate the total price at which it will be sold to the final consumer.

It is very common for companies that start to buy and sell products at retail to decide, at some point in their growth, to offer the option of selling wholesale. Such is the case of Tiendanube.

4) Consignment

Another interesting business to undertake is the consignment business, that is, delivering your product to a third party (another brand, for example) so that they are in charge of selling it (in their online store, their physical location, a showroom, etc.) Y receive a payment once the transaction is completed.

This type of business is ideal for those brands whose interest is not in the final consumer but in the product marketing chain. Examples of consignment business are clothing, books, fashion accessories, among many others.

5) drop shipping

The is a type of profitable business exclusive to electronic commerce that consists of sell products to the final consumer without having their own physical stock.

Let’s graph with an example: suppose a potential customer is browsing your online store, sees an item that interests him, the price seems fair and decides to buy it. Leave your physical address for the shipment of the product and know that you will receive it in 3 days.

Immediately you receive a notification of this request and the notice that the money is already in your account. Then, you ask your store for that item and you detail the address where it has to be sent (before you agree with it if you pay everything together at the end of the month or on request).

This means that you outsource the stock and deliveries of orders. In this way, you become the intermediary between the supplier and the client.

One of the main advantages is that you save the rent or purchase of a warehouse to store the merchandise, and you also do not have to carry out inventory management.

As important disadvantages of this modality, you do not always have the guarantee that the product arrives in a timely manner at your client’s address (it may take more days), and the packaging you receive is generic and does not reflect your brand identity.

💡 tip: keep in mind that this type of business works better in brands that sell more commercial and less artisanal products.

6) Sale of online services

If you are a translator, financial advisor, personal trainer, etc., you can sell your services online.

Create a website that conveys confidence and professionalism, to attract your potential clients.

To sell services online you have to:

Create your brand
Define what type of service you are going to offer
Identify your target audience
Choose a sales platform

After completing these tasks, it’s time to promote your service through these actions:

Create content related to your digital product
Stay active on social media
Diversify your marketing strategy
Offer excellent customer service

💡 Tip: read ours and start your digital business.

So, do you already know what kind of business you are going to start?

In this article we tell you how to start a business with little money in 6 steps:

Article

How to create a business plan

Surely different ones have already come to your mind that can be converted into profitable ventures. Once you define which one you stay with, and conceptualize it as a business, it is time to plan how to carry it out.

Putting together a profitable business plan may seem like a very complex task, but using the so-called Business Model Canvas everything is made easy! Shall we meet him?

The Canvas Model

The Business Model Canvas (Canvas Business Model) is a methodology that allows create a business plan in a few minutes and achieve a global vision of your idea.

To do this, it takes into account nine fundamental pieces in the development of an enterprise and relates them to each other in a strategic way.

The same creator of this model, Alex Osterwalder, assures that the best way to describe a business is to divide it into those nine basic pieces that reflect the logic that a company follows to generate income.

These pieces cover the four main areas of a business: clients, offer, infrastructures and economic viability.

So through the Business Model Canvas, you will be able to discover in a few minutes if your business idea is sustainable when it comes to taking it into action. We tell you what are those nine essential elements or pieces that you have to…