The joys of entrepreneurship is to succeed in whatever you do as business. No matter who you are, everyone wants to see their late night toils, their doggedness, their determination and efforts transform into success. Just how do you succeed in business?
This success can be in the form of leads, more email sent or more goods sold in your online store. In all, your target is to build a business that can stand on its feet, run automatically and subdue the market in its field.
Success like we know is not inborn, it’s something that if worked at can be achieved. The easiest way of doing something is to follow the rules by which others gave done it.
What is this rule of Success?
It is called Minimax.
Minimax is one of the most direct concepts in business and you will see almost overnight changes in your skates when you start implicating it.
Just what is Minimax and how do you apply it on how to succeed in business? Let’s find out, shall we?
Minimax, An High, A Low
Minimax is a concept that will greatly affect your business positively. No matter what to sell or service you render, applying Minimax will catapult your business to greater heights.
I came across this beautiful concept when I was studying biographies of successful entrepreneurs. I was reading about the great hotel icon, Conrad Hilton and realized he used this concept as he build his first class hotel empire. Conrad Hilton believed in this concept as if it were God. And God help him, it never failed.
The concept of Minimax is more of a sales concept than a management concept. Sales you must know is as important as management (if not more important). Without good sales your company will probably fold up and you will fall into bankruptcy. Minimax will help you increase your sales if you apply it well.
So what really is Minimax?
Minimax is a word coined from MINImum and MAXmum. If that wasn’t obvious, now you know. In a pure entrepreneurial point of view, it deals with two things; one, price and two, quality of goods or service offered to the public.
The Minimum refers to the price a commodity or service costs. While the Maximum is refers to the quality the goods or service offered.
Commodities that have low prices are really good in quality. The reverse is also the same. Since your target is the general public (oh you don’t have a targeted set of customers? Really? Then you are flying blind!. We will do justice to this in our next post), you want to manufacture merchandise or offer services that are cheap to acquire or enjoy. Your job as a successful entrepreneur is to offer the public goods with the minimum prices in the market and are of the best quality. Sounds easy? Not quite.
If you want to do this, you must be willing to offer sacrifices, learn and be perceptive enough to stay one step ahead of the competition in your market. How do you obey the law of Minimax? Let’s go for the mini first
1. Better Ways Of Production or Better Service Provision
To cut your prices of your commodities, you have to find a way of making or acquiring them at a cheaper price yourself.
Take for example, a pair of shoe costs a hundred buck to manufacture or acquire from the manufacturer. When you placed it in your store, it goes for a hundred and twenty. That’s the price that everyone is selling.
What if you could produce the same shoes at the same quality for eighty five dollars. You can place a hundred dollar price on them in store comfortably. Sure you are not making the twenty dollar profit other stores are making but you are the first to sell out your commodities and flock the market with more.
How can you produce commodities at a cheaper price? Ask yourself that question until you get an answer. That must be a way of doing things better without necessary adding to the cost of production. Focus your mind on improving your products every single day and you will find answers.
When Henry Ford wanted to improve the rate at which his factories produced cars, he invested the assembly line. Honda did this too. Colonel Sanders simply introduced to us a better way to fry chicken.
A New Way
Find your own ways to make your products better and cheaper. In our information age, information is so easy to get that you can’t afford to stay still. Are you a chef, create a cuisine that require cheaper ingredients. Are a writer, create better find cheaper ways to print your books.
If you are offering a service, it’s the same. Your job in obeying Maximum is to find ways to make the service you are rendering cheaper. Conrad Hilton used this. When he buys a worn out crappy houses, he moves out all unnecessary things and make use of the space judiciously. He scrapped anything that will lead to higher costs for customers. The law is simple, if it’s not necessary and costs people money, scrap it.
2. Offer Promotions
Offer real promotions which your customers can benefit from. Not all those smart, clever, cunning ones that will see them lose money even when it appears that are not. Cut their costs. The idea is to offer them goods at a cheaper price.
Let’s get back to the $85/$100 shoe on the store. During your promo, you can slap a price of $90 on it. Though the commodity is ten dollars off, you are still making profits.
In the maximum you are concerned with looking for ways to improve your commodity’s quality without affecting its price. How do you do this. Everything is in the power of your mind. Start thinking about how you can make better quality goods or offer better services.
As a Chef, you want to offer more delicious cuisines. A sales man want to offer clients better deals. As a car manufacturer, you want to make faster and more comfortable cars, as a writer, you want to write better stories.
Always strive for a better commodity or a better service rendered. It’s like what they said, he who makes the best mouse trap or lemonade, even if he or she lives on an island, people will find him. Be the best and the success follows you
That’s all. I hope you get the concept of Minimax. Till next time.