Building a profitable business
Tally, an Enterprise Accounting Software Solution founded in 1986, has had a crazy ride. They have a strong presence of 2 million customers across India, Middle East and parts of Africa, and are supported by a 20000 strong distribution network. Bharat Goenka, co-founder of Tally, talks about the key tenets that helped them build a profitable business and sustain it for decades.
How to build a profitable business?
1. Step away from constraints
The idea of building with the customer in mind is a fairly common principle. But how often are we stuck in situations where we tend to adjust the value prorosition due to existing constraints? It therefore becomes crucial to consistently evaluate this question.
Are you building to make your life easy or your customer's life easy?
2. Be contextually relevant
To empathize with your customer, you need to take environmental context into consideration. For example, power backup may not be a concern for people in US, but it is crucial in India, and online businesses must keep that in mind while building solutions.
3. Simplify customer's lives
Often times, your customers have a lot to deal with. In case of Tally for example, business owners, who were Tally's primary target group, had several challenges such as getting orders, maintaining cashflows etc. It's therefore important to build a product that does NOT add to their headache.
4. Pay attention to what's important
Good wishes from valueable customers contributes towards long-term success. Being transparent and building trust amongst customers is important.
5. Keep an eye out on Money
Cashflow is often a good reflection of whether things are moving in the right direction from a strategic standpoint. Keeping an eye on it can help in this regard.
Interested in knowing more? Check out the detailed episode on The Indian Dream podcast - here.