Growing up in an environment of entrepreneurship, Arti Rameshwar Yadav learned the nitty-gritty of business operations from her father along with the art to make use of the slightest opportunities that come in the way of an entrepreneur. Early on, she realized that profits are not made just in sales, but they are also earned through the smart purchase of goods and services for production. With a mission of helping Micro, small and medium enterprises to make more profits and procure raw materials at the most competitive prices, she founded Aartyk Industrial Solutions.
Here are three profitability lessons Aartyk’s founder Arti Rameshwar Yadav learned & applied in India’s MSME ecosystem.
1. “You make profits even before you sell the product if you purchase the right quality at a better price point.” Arti shares that you can increase the profit margin for business if you buy the right quality products at better prices than others, if you find suppliers who are providing raw materials at competitive prices, then your profit margins increase. She states, “you ensure higher profits on the product by buying the same quality goods at lower prices by scouting for good suppliers in the market and boosting your profits in turn.”
2. “Focus on building volumes in the trade, a wider reach in the market gives you profits and better market share among the target customers.” There are a lot of people who focus on margins rather than acquiring more customers, so instead if you try reaching out to a broader customer base with your products you will in turn ensure higher profits for your business since you focus on volumes (reaching more customers) and it multiplies your profit in turn and provides your product greater acceptability in the market and ensures continuous growth.
3. The last and most crucial profitability lesson as per Arti is never to cut corners or compromise on quality to save cost. Arti shares, “add value to your product even if it means additional cost. Once the product reaches the right customers, a business not only reaps profits, but it also drives satisfaction for the entrepreneur and builds a lifetime product value.”
Connect with Arti R. Yadav on LinkedIn