The World’s Most Successful Companies include Saudi Aramco, Apple, Microsoft, and Google, all, with one exception, have one thing in common. In this article, we will discover what this is and look at what exactly makes these companies so successful.
If you are in business or want to start a business, how can you learn from those that make the most money? The good news is there is a winning formula that businesses of all sizes can put into action for themselves. But first, let’s look at the other principal keys to a successful business.
Nomad Capitalist can plug you into a world of opportunities with access to new markets, offshore banking, and significant legal tax reduction. Talk to us about growing your business and keeping more of your own money.
Keys To A Successful Business
To establish a successful and profitable business, don’t just pick something because you like the idea of it.
In that entrepreneurial honeymoon period it’s easy to get too emotionally attached to an idea before you’ve had the chance to crunch the numbers. Because before you know it, the idea has already taken root inside your mind and you become irrationally attached to it.
Too many businesses fail because people become obsessed with chasing the dream instead of understanding the reality.
Or they jump on the latest bandwagon and try to emulate the success of others, without fully understanding the underlying technology. This is how we got the dotcom bubble, it’s how we got millions of do-nothing apps, it’s why everyone is suddenly jumping on AI right now, whereas last year they were all about blockchain. But they don’t get any funding because they don’t have a plan.
So don’t just follow trends, create a solid plan with projected earnings, a marketing strategy, and a detailed analysis of the market.
Finding A Gap In The Market
Are you an entrepreneur starting something new or looking to grow your existing business? Then you need to find a gap in the market.
First, consider where your strengths lie. What experience do you have? Which business path would be right for you?
The broader the market, the more competition you are going to have. Think niche. Your market should not be so niche that no customer base can be identified and marketed to.
Either it’s a business where you have no direct competitors, have something unique to offer, or have taken a different approach. Can you identify an unsolved problem?
An excellent example of this is Nomad Capitalist’s founder, Mr. Henderson. Having grown tired of getting the runaround from various offshore service providers, Mr. Henderson decided to apply the lessons he had learned, looking for ways to take control of his business and life.
He realized there was a huge gap in the market for those of you who don’t have the patience to deal with bureaucrats and legal jargon and just want to cut to the chase. That’s what makes Nomad Capitalist stand out from our competitors, that real-life practical experience.
We know how frustrating it can be just to get a straight answer sometimes and that’s why we work doubly hard to help our clients. Plus, rather than trying to sell one jurisdiction, we’re able to find the best solutions for our clients as part of a holistic Action Plan.
Moderate Startup Costs
Every startup is unique and comes with its own distinct expenses. However, there are some standard costs that all business owners need to take into account, including space, equipment, software, staff, licenses, insurance, and marketing.
If you’re starting a new business, especially if it’s your first business, keeping startup costs low to moderate is essential. This is just one reason why online businesses are so popular. You literally need a laptop, an internet connection, and an idea.
You must also set something aside for marketing, but you can scale this as your business grows. Some of the most popular online business startups include providing online courses, consultation services, and coaching.
Low Operating Costs
In order to reach your financial goals and remain profitable, start with low outlay and keep operational costs down. For example, if you are starting a brick-and-mortar business, you must factor in significant expenses such as office space, utilities, etc.
Other costs that are going to mount quickly are staffing and legal costs. You can take a lesson from huge and successful tech companies such as Google, which has offshored much of its workforce.
Whether or not you can offshore depends on the type of business and services you provide. It is worth taking that time to identify services and processes within your business that can be offshored.
Moving offshore can help you achieve higher profit margins, increased customer satisfaction, and access to skilled labor at lower costs in more business-friendly countries. Are you interested in expanding your business activities overseas? Talk to our team so we can help you craft a bespoke, holistic strategy that works.
High Earning Potential
What makes a business profitable depends on several factors, including your market, geographical location, sector, and business model. As a general rule, reducing costs, improving profitability, and increasing efficiency and sales are all key to reaching your high earning potential.
Focus on finding the best high-quality customers in your target market. Focus on selling premium products and identify services and products that can be developed further to meet the needs of your most profitable customer base.
Review productivity, costs, and turnover regularly to identify areas where you can make improvements and ensure the highest earnings potential for your business.
The success of a business largely depends on how effective it is at generating sales for every dollar you put to use. To boost your profitability, you will need a solid base of customers, lots of repeat business, and opportunities to upsell and cross-sell.
Yes, you can make money selling niche services and products, but all the world’s most successful companies (even the biggest luxury brands) sell at scale.
Apple, for example, is one of the most successful brands with products that remain high in demand. Not only do they provide products that everyone uses and need, but they also continue to innovate, keeping customers interested and demand high in the long term.
What interest is there in my service or product? Can people afford what I am selling? Will this business model hold up over time?
Does that mean you should forget the idea of starting a new business? Of course not. An entrepreneur is a risk taker by definition, but the risk should be carefully calculated. Starting a business that can weather the storm in good times or bad is crucial.
While an artisanal ice cream parlor selling $25-dollar sundaes might make a lot of money during the good times, this is far from a recession-proof business.
People cut back during a downturn, so a year from now, that cool hipster spot will most likely be boarded up. Meanwhile, your local Baskin Robbins is still doing a steady trade.
Scaling your business is not as simple as you might think. Having an Action Plan and developing a growth strategy will help you scale and set your business up for long-term success. The idea is to start small and grow fast with minimal friction.
First, look at where there is room for investments. Look for opportunities that are already there, identify what works well in one area, and how you can expand these products or services to new markets.
Uber is a great example of a business that has scaled successfully. Beginning as a startup in San Francisco, it went on to expand to thousands of jurisdictions across the world and later launched UberEats.
When looking at your own strategy to scale, think about opening new branches, utilizing technology to gain an advantage, or acquiring competitors and bringing them all under the same business model.
If you look at all the top earning tech companies, notice how they each have an ever-expanding ecosystem of interconnected products and services. Some of these are developed in-house, while others are simply acquired and integrated into the same ecosystem.
Being profitable isn’t about being greedy and looking to make the most from every sale. When it comes to building a successful business, profitability matters.
The more profits you make, the more you have to invest back into improving and expanding your business. Plus, with economic uncertainty in the air, high profits serve as insulation, protecting your business from rising operating costs.
Setting the right price point for your products and services from the offset will put you in the best position to be a profitable business. To remain successful and profitable, you will also need to constantly track and evaluate what is working and what isn’t and commit to continuously improving your business.
Excellent Customer Service
Companies live and die based on their reputation and customer satisfaction rates. By investing in excellent customer service, you will keep creating loyal customers that stick with you and even help you gain new ones.
Potential customers put a lot of importance on the opinions and experiences of others. For this reason, both online reviews and word-of-mouth referrals are invaluable for your business.
Around 50% of customers say they trust online reviews as much as personal recommendations.
Nomad Capitalist has a reputation for excellence, and you can check out our consistently positive reviews on Trustpilot. We believe in providing a level of service that is often referred to as “old fashioned,” but we prefer to call it courteous and respectful, offering our customers the red carpet treatment and making sure every detail, however small, receives the same level of care and consideration.
Learn From the Best
The largest company in the world by revenue is currently Saudi Aramco, the Saudi Arabian Oil giant that makes hundreds of billions of dollars.
Previously, Apple, Microsoft, and Google held this title. Unlike the Saudi state-owned Aramco, these are all private, US-owned tech companies with their headquarters in Ireland. What do these tech companies have in common? They all work on legally reducing their taxes.
Realistically you are not going to base your business model on a giant oil company, or find investors who can match the deep pockets of the Saudi government.
However, you can learn from what these tech industry giants do right. Where do you start? One of the easiest ways to get started is by legally reducing your taxes.
A small business or entrepreneur obviously won’t be sharing the same playing field as a massive tech company like Microsoft, but the basic principles are the same. These tech giants are soon going to be subject to a global minimum tax of 15% rather than the previous 1% available in certain jurisdictions.
In 2021, around 140 countries signed up for a new agreement led by the OECD (Organisation for Economic Co-operation and Development), which will see the world’s biggest companies paying the new minimum tax rate of 15%. The United Kingdom and other jurisdictions have started to go ahead with this new legislation.
So from a tax perspective, you will have the advantage over big names, like Apple and Google, who will have to pay this minimum tax rate, as your business will not be subject to this new rate if you are under the large threshold.
For example, if you were to incorporate your business in Ireland, you could still pay the 12.5% standard rate making it worthwhile to move to where your business is treated best.
Mistakes to Avoid
Increasing conversions on your websites and improving your marketing are worthwhile goals and help grow your business. Optimizing sales and marketing funnels, product improvements, research, and development of better customer service are all critical to a successful and profitable business.
However, the best way to guarantee your business makes more money is by reducing your business tax burden. Looking at the most successful companies, not only do they have higher revenue, but they also keep more of what they earn.
Companies and corporations based in the United States, for example, are going to pay much higher taxes. A lot of businesses do not have the money they would like to reinvest because they are spending so much on taxes. The impact of 30% plus tax means what you can invest back into your business is significantly limited. The simple principle is that you need to reinvest and keep more of your revenue to win.
The Winning Formula
The formula is to increase revenue but also lower costs. You can first reduce costs by hiring people offshore. For example, companies like Apple hire people from Ireland, which is costly, but they also hire people from all over the world, taking advantage of a global workforce. The solution to making your business the most money is this formula, manage expenses, lower costs, and increase revenue.
If you hire people based in the United States, your costs will increase. Inflation is going up, and people need more money to live. For example, hiring elsewhere in South America, Latin America, or Asia, you will pay a lot less than someone based in the US, Canada, or Australia. Once you have looked at international hiring and reduced payroll costs, the next step is looking at your tax bill.
Business is simple, the goal is to have the highest margins possible, and you can do this from one place. Operating and hiring overseas can help you achieve this. Are you willing to go somewhere else to take advantage of low tax rates and increase your margins?
Play to win. Focus on reducing expenses, your tax bill being the biggest one, and think about hiring people overseas. Be the business that makes the most money in your sector, and reinvest faster than your competitors.
Nomad Capitalist can create a holistic Action Plan to get you started on the road to being the business that makes the most money in your sector.
The world’s biggest companies by market cap include Apple, Microsoft, Saudi Aramco, Alphabet (Google), and Amazon.
It depends on your location, circumstances, and how much money you have to invest, but generally, you should be looking for low setup and operating costs and goods/services which are always in high demand.
Starting an online business is popular with entrepreneurs because there are very low start-up costs, giving you the freedom to go where you like. Some online business ideas for digital nomads include consultancy, teaching and training, freelancing, online marketing, etc.
Building a successful enterprise means creating and implementing a solid business plan. A successful business means finding the right service or product and a profitable market to sell to.
Key factors include moderate startup costs, low operating costs, high earnings potential, excellent customer service, and a recession-proof business model.
The world’s most successful and profitable companies all use the same winning formula, keeping revenue high and costs low.
To make your business more profitable, look at offshoring to make substantial savings, particularly in taxes.
At Nomad Capitalist, we implement bespoke, holistic strategies for successful businesses and entrepreneurs. Helping your business legally reduce tax bills, diversify, and protect assets.