It is very important to get it right, whatever your business may be whether it is a coffee shop, clothes shop, fast food restaurant or your business is a service provider most startup companies fail within the first 12 months. The fundamental reason for this is competition. We see how the big supermarkets are now a monopoly in the market area selling from food to clothes to electronic products even now they have pharmacies in most supermarkets. So for most of us, it is a one stop to get all we need. This could however force many small businesses in to closing down their business as they will see low sales and profits.
Small businesses need to maintain a high margin in order to make profits, therefore, its competitor like the big supermarkets can reduce its prices as they buy in large quantities from their suppliers which mean customer can buy at a low price rather than buy from a small business at high prices. Many supermarkets are now implementing more combined selection of products and services to make it a one stop for its customers and to only get customers to buy from them rather than the small stores.
We might ask ourselves how can small business survive and continue to establish themselves in the marketplace, one of the ways is to offer something unique and have that gap in the market for the products and services they are offering, price is also a major factor that determines the success, sell more products at low process. A business will need to look at its strategic advantage in the marketplace, divert away from its competitors, perhaps finding a unique location to start up.
Having a competitive advantage over your competitors is always a great thing in maintaining your position in the market. Customer services is also a key in making people purchase the products and services and being a returning customer, customer loyalty is another important aspect treating your customers well and giving them what they what will always bring back the customer.
Planning is the key to success and staying ahead of your competitors, innovation looking into new ideas and methods that could enhance your business. Many businesses invest heavily in to research and development to enhance their products or services and research is how we find out how we can improve what we do in terms of development we may go through different phases of development until we are satisfied that we have the right product which with market research we can identify the needs and wants of that product.
No risk no reward is a phrase that is used by many entrepreneurs. Many successful entrepreneurs have started businesses from scratch and therefore from experience the majority of them consider risk as being a positive factor. We live in a world were without taking risk we will never experience what it would be like for example starting up a business is a risk in terms of losing money and not being able to have a successful business due to competition and the price wars.
Many entrepreneurs are successful due to their risk taking attitude. It is because of taking such risk and investing in their ideas and innovation that they become successful alongside this is hard work and continuous effort. Their are a lot of factors that have to be considered when taking risk in order to manage the risk and be confident that you will succeed. Confidence is the key to believing in your self and your ideas, motivation is also another key factor to be motivated in what you do and to have that belief in your self.