3 ways your startup can survive competition
Every industry is plagued with competition. From the big sharks to the small ventures, the lack of competition is a sure sign that the industry is not viable. Surviving against all odds requires an entrepreneur who has deep knowledge of his target audience. If he doesn't know who his potential audience is and what they want from the product he's manufacturing, the budding entrepreneur is setting himself up for failure. Fighting the big billion-dollar companies requires a clear vision and fierce dedication. Here are three easy tricks to help your startup survive in the face of competition.
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Manufacture a product that your audience needs
Before launching any product or service, conduct extensive market research. Use surveys and questionnaires to find out what your target audience needs. Ask them specifically what trouble they are facing with the current products in the market and how they would like to see them improved. Once you have figured out a solution to their problems, manufacture a product they will want to purchase. For example, there are thousands of shoe brands in the market today. If you manufacture shoes without any research or development, you'll just be another forgotten brand. However, if you want your shoes to stand out, ask your target audience what more they'd like their shoes to have. Make their answers the USP of your product.
Learn to minimise expenses wherever possible
The bottom line of any successful business is to earn more than you spend. One of the easiest ways to do this is to keep your expenses low. Never purchase machines and tools in retail. Instead, scout the market for previously owned things that are in good working condition. In today's economic scenario, rarely does anyone purchase anything from vendors by giving them advance payment. If you can afford to give advance payment to your vendors, they'll be more than willing to work out terms of agreement in your favour. They'll continue to supply you with materials to ensure that your business is up and running at all times.
Maintain a healthy cash flow
Your incoming flow of money is the lifeline of your business and therefore you need to discover ways to kick-start your flow of income quickly. If you're just spending money without receiving any returns, your business will soon fall flat. You need to have at least two to three major clients you can bank on to keep giving you work. At the same time, you need to develop healthy relationships with your vendors so that they give you leeway in making payments. Ideally, the key is to make sure there is no hole between when you pay for work and when you get paid.
Use the above-mentioned approaches to help your startup survive against all odds. Focus on sustaining a fruitful business and no amount of competition will be able to tear you down.