Many people say that the key to doing business is to prioritize integrity, have good quality, offer value for money, and then you can succeed. But in reality, these are just layman.
Why are they layman? Because integrity is just the basics of doing business, and offering a low price is a pricing strategy that most people will think of. But just doing these things doesn't mean we can make money. In fact, many people will lose money because of it.
So, what is the most important thing in business? In this era, what kind of business is the most profitable? What is a good business model?
If we are starting a business or planning to start one, how should we choose the industry to enter?
This time, we will discuss the fundamental logic of business, analyze the truly profitable merchants, bosses, and entrepreneurs. Where do their profits come from? What did they do right to become so wealthy?
What is the most important thing in business? Some say you must have money to start a business. Others say you must be very capable and know everything to solve all kinds of problems. But these are not the most important things.
From beginning to end, the most important thing is the business track. We don't need to do everything well, just do the key things right. No matter how capable we are or how much capital we have, if we choose the wrong business track, we will never make big money in our lifetime.
What is a business track?
The business track refers to the industry we choose, the field we enter, and the market audience we cater to.
If we choose the right business track, we don't need to put in too much effort and can still get huge returns. On the contrary, if we choose the wrong one, we will put in a lot of effort and get disproportionate returns.
So, what kind of business track is a good one?
The answer is to see if our industry has financial attributes. This is a major premise.
In industries without financial attributes, no matter how hard we work, no matter how many products or services we sell, we won't see much profit.
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For example, there are two farmers. Farmer A sells juice, which is sweet and made from natural ingredients without any additives. His daily job is to take care of the orchard, then squeeze the fruit into juice and sell it. Farmer B sells wine. He also has his own orchard. His daily job is to ferment grapes and then make wine to sell.
These two farmers do similar work, but their incomes are worlds apart. Why?
Because wine has financial attributes, and juice does not. The price of wine can increase over time, while the price of juice remains the same.
So, Farmer B just needs to store his wine, and without doing anything, its price will increase. But for Farmer A, his juice won't become more expensive, so he has to keep working hard, keep producing, and keep selling to make money.
This is the magic of financial attributes. They can make your product or service more valuable over time.
So, if you want to make big money, you must choose an industry with financial attributes. This way, you can get huge returns instead of always working hard just to survive.