How To Start A Profitable Business Project On Social Networks

2023 Author: Amber Richards | [email protected]. Last modified: 2023-05-22 00:24

The easiest way to start a new business today is through social media. There is no need to rent an office space, because a team of employees can be hired remotely. Plus, advertising on social media is much cheaper than advertising in magazines and on television. In other words, the Internet space provides us with the maximum number of opportunities for building a successful business.

A profitable business project on social networks can be created in just 7 steps. Using illustrative examples, we analyze them together with our expert Svetlana Kurako, a marketer, business development specialist.

Step 1. Find your niche

Marina knows how to knit well. She created beautiful cardigans, hats, sweaters, but they did not bring any profit. She focused on a specific group of products - scarves and snoods. I learned how to knit them well, tested various designs on my target audience and determined what things are most in demand.

Marina made several design options that became popular. She did the same with the color scheme - chose several combinations and found out what was in the greatest demand. For six months, she made a profit of about half a million rubles, after which she scaled up the business: she rented a knitting machine in the shop and hired an employee.

Step 2. Determination of the target audience (TA)

The problem with defining target audience is that people try to target all possible customers, but these are very different people. It's hard to give up someone in order to focus on a narrower audience, because this means that you are losing a potential buyer. However, it is precisely this distinction that makes it possible to convey the value of the product to the target audience, which is ready to pay for it. The limitation gives rise to profit, and not vice versa.

The baker who made all kinds of confectionery narrowed his target audience to people who adhere to modern dietary rules and prefer gluten-free products. His sales skyrocketed because he was able to properly position himself for a narrow audience. Moreover, the competition in this niche was lower, and its target audience was ready to pay more for such products. These people didn't need to be told what the benefits of gluten-free baking were. They not only understood this themselves, but were also looking for just such products.

Step 3. Identifying a unique selling proposition

Uniqueness can be found if you analyze yourself and your product. In the event that it was not possible to identify what can lead forward and distinguish you from competitors, uniqueness should be created. For example, a product can be redesigned or a different one can be created that is unique.

Andrey, an entrepreneur with an engineering background, made small wooden toys. Exactly the same products are manufactured by many large, including international, companies. He could not only compete with them, but even offer a product at the same price. Therefore, his business was dying out, profits were decreasing.

He decided to rely on his education and began to create constructors. He stopped producing what his competitors do and focused on developing unique toys with which the child can develop his engineering skills. His complex constructors were designed for a very narrow target audience, which is ready to pay big money for quality products. He promoted himself through family restaurants where his product variants were stored, and through social media. Thanks to the creation of a unique product and the right choice of target audience, its profits grew rapidly (see also: "How to find an idea for a business in 15 minutes").

Step 4. Initial investments

Investments are needed for the production of single product variants that can be sold via social networks to current subscribers, and the proceeds can be invested in advertising and production. With a correctly defined target audience, advertising will be as effective and efficient as possible. Thus, the start-up costs are very low. Later, more significant investments in advertising will be required, but money for this can be taken from the implementation of previous sales of the project.

Step 5. Promotion in the Internet space

The girl is engaged in yoga, she is a coach. She has online courses and her own studio. In addition, she organizes trips to Asia where people can practice yoga.

She has already completed all the previous steps: she has her own unique teaching methodology, communicates a lot with her target audience, talks about the value and benefits of classes, etc. But until a certain stage, she did not understand that she needed not only to make a profit, but also to invest in promotion. After she took up advertising, her income increased several times. Investing in promotion increases sales and therefore profits.

Step 6. Promotion of brands in offline space or development of a personal brand

The girl psychologist never had any problems with profit, but there was no growth either. She wanted to launch her own course, so she focused on a personal brand.

Prior to that, the psychologist had not covered her professional successes and stages of self-improvement in social networks, and, accordingly, no one from this space turned to her. She started attending more conferences and blogged about it all the time. Then I organized an offline conference in my city and started publishing. So her personal brand began to develop.

The girl started with small publications, since she was not a major specialist. However, local magazines happily published her articles. Later, she released her own small brochure, which can be downloaded from the link in her profile. There it was described in detail in which areas of psychology she works. Gradually, they began to see her as a professional, which contributed to a sharp increase in her income.

Step 7. Scaling

Scaling is necessary if you want to achieve really big profit turnover. Either the quality or quantity of the services you provide should change significantly. Scaling is necessary so that you yourself no longer have to knit hats, bake pies or consult.

It is necessary to introduce new formats where you can collect a large number of clients at the same time (online courses, webinars, etc.). Today, there are many scaling options that can increase profits by adding new products or expanding your footprint. Another option for scaling is to copy your business and create a project in another or adjacent area using the same algorithm.

PS:

To become the owner of your own business project on social networks, you practically do not need initial investments. Enough of your determination and the right strategy for development and promotion (read also: "How to develop your business: components of success"). Analyze your capabilities, set a goal and use our advice, and the results will not keep you waiting.