STOP! Is your business missing it's mark-et?Written by Aaron Colman info@ibasics.biz http://www.ibasics.biz
I've seen a lot small business go under in last few years. Most of these were founded by good, well-intentioned people that wanted nothing more than to take something that they enjoyed and make it a successful business.
This can be a good way to find business ideas, but it's before you dedicate your life's savings to creating your business dream you really should think about it from perspective of a business executive.
Sometimes, fact is, you're just not positioned well enough to get into market. This doesn't mean that you should abandon your dream, it just means that you need to take a new approach.
When evaluating different approaches, here are some of things you should consider:
1. How much are customers willing to pay?
If you customers aren't willing to pay for your product or service offering, you're going to be fighting an uphill battle.
While it's possible to succeed with low-ticket sales... you should be prepared to focus your business on a quick, high-volume sales process as opposed to a more lengthy sales process. This works especially well on consumables like food or clothing, but wouldn't work at all on major contracts.
2. What does it take to satisfy those customers?
Customers can be very demanding. What does it take to make them happy? Are standards for a new product so high as to price it out of your range?
3. How much does it cost to satisfy them?
The ultimate conclusion to question above. How much will it cost to make your customers happy?
4. How big is customer base?
If you've only got a dozen customers in country, you'll clearly want to take a very different approach. Take for instance commercial airplane manufacturers. The cost of each product combined with small number of customers makes it difficult to penetrate this market.
5. Is it growing or is it shrinking?
How many horse and buggies have you seen lately? Obviously some markets are shrinking, while others are growing. Getting involved in a shrinking market will make it tougher to succeed since you're going to be competing with already established "big fish." On other hand this places extra value on established market share, so if you have strong enough competitive advantage it could become especially profitable.
6. What kind of competition is there?
If you've only got a few small name competitors then your branding efforts will be greatly leveraged in your favor. However if you're competing against large name firms, then you're fighting against grain. For this reason a large number of companies have found it profitable to commoditize market by flooding it with a large number of generic alternatives.