In order for a business to succeed, it needs to stand out. If a business doesn’t stand out or doesn’t offer anything that other businesses do not, then it’s destined to fail. This is because, if your business doesn’t stand out, then customers will choose the cheapest option. Low cost can be a unique factor for your business, but oftentimes it’s easier for large businesses to have low costs than small ones. Because of this, it’s important to find other things to leverage your business other than costs, especially when starting out. There are many factors that can make a business unique, and how you decide to stand out depends on your business, and your own goals and ideas.
There are six core factors that give a business a competitive edge in its market. These factors are quality, price, location, selection, service, and speed. Quality is simply the quality of the product or services your business provides. Price, as previously mentioned, is the cost that your customer has to pay for your product or service. Location is the accessibility of your product or service due to its location. Selection is the variety of your products or services. Service is customer service, which is the personalized experience given to customers. Finally, speed is how fast products or services can be given to customers. Depending on how competitive the market is, a business will need one or many of these factors in order to be able to compete in the market. Market research, which is something I’ve covered in a previous EMI blog post, can be very helpful in finding which of these your business should prioritize. If all the other businesses in the market prioritize price, then you might want to try to prioritize quality instead.
It’s also important to see if you even have a chance at competing in a market. You want to create your business in a market that is large and growing, don’t found a business on a dying market. You’ll also want to analyze how successful your competition is. Be wary if a market has little to no competition, this could be a great opportunity, or it could be very difficult for a business to exist in the market. However, don’t sell to a market where the competition is too successful or powerful, as your business won’t stand a chance against them. If customers have a problem with other businesses in a market, that is a prime opportunity to create a business that offers the same product or service without the problems. Standing out is extremely important in business, because if a business doesn’t stand out, it will fail.