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Side (Home Based) Business Owner; Lets Do What Top Companies Do To Generate Revenue.



Today i would like to talk about top businesses in the world today and how they generate revenues. Im sure that mostof you guys who are reading these post are working full time and are looking for ways to generate side income. 

And so today i was thinking of sharing how most of these big businesses generates revenue and how; you could also follow them and automate your business so that you dont have to spend more time in it. 

Instead; focus on your day job; and maybe spend an hour or two a day in this side business (unless of course if your side business is already paying you more than your day job then its time to make the switch).

So anyways; one of the things i learned when i first started my online business back in 2008 (a nail polish store called Nailfiesta); you can read more here; i was always under the impression that in order to make more revenue; ive got to find more customer. Isnt that something most people think?

And so i spend so much on ads revenue to bring more volume; only to realise that the people who were buying from me again and again are the same people! Have you realise that? Especially if you already started a business? Do you see a trend there? 

Thats when i realise; eh; maybe coz not everyone likes nail polish; and thats true for almost all business (except maybe commodities). Not everyone is gona buy from you. And ITS OK! Really! You dont want everyone to be your customers too!

And so back then; i was in the quest looking for the magic potion on how does one make their business succesful. So what did i do? I just go and find people who done if before me and study from them. 

Back in 2008; there we not many especially for intenet business so i started reading biographies. Whatever i could finmd in MPH or popular that time. 

Being in Sarawak; there was limited books. but as time went; i found this amazing thing called ‘torrent’ and PDF to download books; and eventually ipad mini came out which i could use as reading device (sakit mata!) and finally the kindle!

One thing i learned earlier was this (from Jay Abraham); there are three ways business can grow. Only 3:

  1. Getting more people to buy from you (volume)
  2. Getting Same people to buy more from you in an invoice.
  3. Get the same people buying from you again and again.
This applies to every business; and truthfully ive been applying to most of my business; as well as when i invest in businesses; i look at these fundamentals too. Everything else is secondary. 

It doesnt matter if you have awesome product, or awesome brand or awesome logo design or awesome team; if you cant sell; the business will eventually tutup. 

So anyways; what has this got to do with big company and us? Its everything! If they can do it in big scale; its not that difficult for us to do it in small scale! Thats what i feel.

So here are the list of top companies in the world today:

Lets ignore the ones we dont know but lets review the ones we know:


Microsoft:

So microsoft’s revenue comes from 3 ‘division’ which are all equally divided (close to 33% revenue from each)
  1. Productivity and Business Processes (Microsoft office etc)
  2. Clouds (servers)
  3. Personal computing ( products)
So based on this which do you think is making the business revenue? 

I personally feel; its not volume (they probably went for volume in earlier days; now probably only the personal computing segment is volume game wanting more people to use it); the rest: its subscription. 

Means people get the product once; and they have to pay for using the softwares and clouds again and again.

Lets see 


Apple:

So heres where apple’s revenue comes from
  1. Iphone
  2. Ipad
  3. Macs
  4. Wearables
  5. Services: like icloud etc
From here; i can only conclude that their business can be divided into product, & services.
They were initally in the volume business (when iphone just came out etc); after that: it was just selling upgrades to the existing user. 

Also after sometime; thier revenue went up because they created an eco system for their user. When one is already using an mac; it just makes sense to get the iphone, watch and ipad and so on. 

So here they are selling to the same users (like num 2 on top). 

And after that? Oh well; since you already have all the products; you might as well subscribe to the icloud; which brings us to the subscription business model.

Interesting right. Latest; i was watching the keynote earlier this year; and now they have convinced me that i should get the family watch for my kids and parents so that i get the call from the watch incase anything happens or i cant locate them. Brilliant guy this Tim Cook and his team are (do read his biography if you have the chance:0)

Lets now go to 


Amazon:

So amazon’s revenue comes from only two section:
  1. Retail
  2. Subscription 
Retail we all know what it is; its purely volume game. But if you do realise; they are also trying to sell to you again and again (with the endless emails etc. Just like how lazada shoppee is). 

The people who are selling inside; they dont really boost them up (unless the sellers pay); but Amazon’s purpose is to get you to come back to the platform every time you buy something, they get the commision. 

So again. Volume first; but with the data from your previous purchase, they get you to come back again and again. 

The subsription part of the business; well thats exactly what it is: subscription. With kindle and amazon prime; people just pay a fee everymonth to use the service = Same person buying everymonth.

So i think you get it now right? How all these businesses operate and grew?

How To Apply To Your Business?

So what im suggesting is a little different from what you would have heard but i personally feel its more sustainable over the long time. 

Take it with a pinch of salt as im not a business guru or anything but i have applied all these in all my business so maybe it might be successful for you.

So lets say you have a product you want to sell.

Volume:

The first thing i would do is send a blast to all the existing data that i have. If you dont have ‘data’; you do have whatsapp num and office friends, fb friends and all. Do be mindful when you post to them though. 

Coz these are your friends and family;-) dont go all MLM sales pitch. 

Tell them personally that you are trying out this side business and if they would be interested to purchase and give a honest feedback. 

Some will some wont; dont worry about it:) so this is your first step and you are trying to sell to ‘volume’. (Later on; you can have social media accounts and run ads etc. But its not important right now)

Sell More Things To The Same Person

After they have tried and they give you a feedback and they like it and you chit chat with them about what their problem is etc; what you do is you upsell something that will complement the product. Example if its cleanser today; maybe next is toner, serum etc. only suggest if it will work. If it diesnt dont and find something else for them. Remember you are trying to build and keep trust here!

Don't force if they dont want to. Its ok even if they are repurchasing the same thing only. Infact give them a sample to try out because chances are sooner or later since they already trust you and ur product; they wouldnt mind trying the rest. 

‘Subscription’

Now if you keep a good relationship with them, and you sell good quality products that works for them; they will come back to refill again and again. And thats how you get the ‘subscription’ like; which is almost like ‘automated’ so you dont really have to spend much time in this business. 

And finally; to grow; Just repeat all the steps above:-)

Later on; if you are ‘big’ you can have ‘divisions’ for all these three ‘sections’ and thats how your business will grow bigger. That can be in the pipeline if your business grew beyond your salary:-)

Now im not saying that this only applies for cosmetics; but it applies for every business. So do try it and i really hope it works for you.

However; if you wanted to always start a cosmetic business; SoapLab now has a new thing where we make readymade products every week. 

Which means every week we come out with new products which you could buy and test out (1pcs, 5pcs, or 10pcs) and if you liked it; in the future; you could buy the same thing in bulk (10pcs above). 

We will not be selling the same product in 1pcs anymore. One Week One time only!

So in that way; your customers can never buy it from us anymore unless they buy in 10pcs.

Why Are We Doing This?


For starter; SoapLab is a supply and manufacturer. We are not retailers. We are doing this because some people are too scared to DIY but want to try out the product before DIYing; and so by doing this they can buy 1 first and if it works they can DIY.

But besides that; i feel that one of the ways Malaysia can be ‘big’ is by boosting our own economy (without all those International businesses coming in etc) and one of the ways to boost economy is by doing business.

I love Malaysia too much and im thankful to be born and raise here so i was wondering if i could contribute to her by helping to grow more businesses. Maybe this could be one of the way. I dont know. 

And so because of that; to make it easier for you guys to start selling; all the products are ready packaged and labelled without the name SoapLab/ Fresshhh. 

In fact if you want you could print a little sticker to stick at the back saying its distributed by (YOUR COMPANY) and contact information (you know those RM 5 stickers in the mall type that we stick on our kids books. That type:-)).

I really hope this would push you to finally try it out. 

For a start; coz i really want you to try; i would like to give a RM 50 voucher for 10pcs and above. Whatsapp 0126643817 to get the discount ya (office hours only).

Hope you enjoyed this article as much as i enjoyed writing it :-)

 

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