“Confidence and enthusiasm are the greatest sales producers in any kind of economy.”
–O.B. Smith, Author
There have never been so many opportunities to build a successful business than there are today. As many as 80 percent of all the products and services in common use today at home, in business and in organizations large and small, will be obsolete in five years; they will be replaced by new and better products and services. The rapid development of new technology and the desire of people for new or better or cheaper products or services means that you can build your fortune easier today than at any other time in history.
However, we know that 80 to 90 percent of new businesses fail in the first three years due to a variety of factors. One of those factors is managerial incompetence. It is an inability to sell the product or an inability to control costs or both. Another major reason for failure is offering the wrong product at the wrong price to the wrong market at the wrong time, or a combination of these. In which case, even the best marketing efforts and cost controls won’t help you. I’m going to explore these issues in great depth over the next few months, as I start yet another business with my husband. In the meantime, here are three factors to consider in ensuring your business success.
- Determine the Need. The first principle with regard to selecting any new product or service is to determine that it fills a genuine, existing need, that it solves a problem of some kind for the customer, or that it makes the life or work of the customer better in some way. You must be very clear about this.
- Sell a Quality Product or Service. The second principle for success with a new product or service is that it must be of good quality at a fair price. And if it is in competition with other similar products or services, it must have what is called a unique selling proposition. It must have some beneficial feature or attraction that makes it different from and superior to its competitors.
- Determine Your Area of Uniqueness. No product or service can succeed unless it is somehow unique and superior to any other product or service like it. There is seldom any real opportunity in what is called a “me too” product - one that is just the same as all the others. At the same time, the safest business strategy is to start off with an accepted product that you can improve. In other words, instead of trying to invent a whole new business or industry, start off with something that people are already doing, people are already buying and using, and find some way to improve it.
What is my big business idea? I’m tackling one of the toughest problems in dental offices worldwide. While that in and of itself might not be of any interest to you, (and I don’t expect it to be), how I achieve my success from start to finish is what I’ll be blogging about. If you own your own business, you’ll definitely want to follow this blog over the next year.
Until next time,
This post was written by Debra Moorhead, Motivation, Education, Inspiration on January 28, 2009