Statistics indicate that 95% of startups shut down within the first five years of operation. It is evident that building a successful business requires hard work, patience, and dedication. Remember success is in the preparation. Thomas Jefferson one of the founding fathers said that if he is given ten hours to chop down a tree, he would spend eight hours sharpening the ax.
In this article, we share with you 3 TIPS to prepare you for success in your small business. The tips will help you grow your business and increase your market share.
1. Focus on Your Niche
Sometimes when people start a new business and don’t see the progress they expected within a few months, they’re ready to jump on the next thing. They may try a different market or a different business idea. This mostly happens to people who have not taken the time to research and know what the market needs.
The first step to start and run a successful small business is to do research and identify the gap in the market. This can be done by analyzing what your competitors are offering. Don’t do as they do, meaning don’t copy exactly what they do. Instead, identify what is missing and try to feel the gap.
Alternatively, you can even try to turn your competitors into your customers by offering them what they all need. Either way, the unique selling point you have identified becomes your niche.
2. Optimize Your Product or Service
The first step in venturing into a new market is having a high-quality product or service. This gives you an edge over your competitors. Innovation is the key to coming up with a great product or service. Do market research on the type of products or service your competitors are offering.
The next step is to find ways to improve your product or service to be better. You can also think of ways to package your products or services to make them better than those offered by your competitors. If you venture into a new market with products or services that are similar to your competitors’, then customers will have no reason to buy from you.
Remember, your competitors have already established trust with customers. You must give customers a reason to test your products or services.
What if you can’t find ways to improve the product or service you’re trying to sell? The best alternative would be to use price as an entry point. This means you’ll have to charge less until you capture a good number of customers even if you have to narrow your margins and break even.
3. Invest in Digital Marketing
Small businesses don’t have the resources to run elaborate marketing campaigns like big established corporations. Digital marketing is a cheaper form of advertisement compared to running adverts on TV, radio, and print. Furthermore, digital marketing enables you to reach audiences in wide geographical locations.
With digital marketing, as long as you can foot the cost of shipping and taxation in different locations, you can sell your goods or services anywhere.