Unless you’ve come up with a revolutionary invention of your own, there will always be other market players selling what you’re selling. Having been around much longer, they’ll have an established customer base and much more experience. These are potent tools to effortlessly outcompete startups in no time, which is what happens to 19% of them.
While the odds are against your startup as a new market entrant, some essential tips can be crucial to success. Firstly, you must ask yourself a few questions ‘before’ stepping into the market;
• Is someone out there already offering what you offer at a similar price point? How are they doing?
• What buying options does your target consumer have?
• What prices are those options available for?
• Does your product offer better quality and/or a lower price?
The last one is crucial. The answer to this question needs to be a ‘yes’ to cut above the 19% of startups that get outcompeted. The fiercer the competition is in your niche, the more convincing this ‘yes’ has to be.
Once you enter, it’s imperative to be perfectly aware of the competition and their moves. You’ll have to know each aspect of the market you’re targeting, and the big and small players within it. Aim to fill ‘gaps’ in the market by offering something the competition isn’t. Look for possibilities to:
• Offer more for less.
• Undercut the market at lower prices.
• Provide faster service.
• Achieve better customer satisfaction.
• Sweeten the pot for your buyers by offering free shipping, product trials, etc.