Running a business is challenging. Surviving beyond five years is a rare achievement for most businesses. One of the most common causes of business failures is competition or overcrowded marketplace.
In a study conducted by CBInsights, 42% of start-ups failed due to products and services for which there was no market need. For surviving and succeeding in business, entrepreneurs need to create their own space.
Markets are crowded and competition is higher in various industries. Opening a company has become easier, however succeeding at business still remains a daunting task. How a company is able to differentiate itself from others and gets noticed decides its future.
Great businesses are built around excellent products and services. When you build a culture of high performance and excellence, customers will be attracted towards you. Here we look at the strategies entrepreneurs adopt to excel in overcrowded markets.
1. Establish a Strong Differentiator
Every business has a heart and soul. It has a spirit. What is your business, what do you stand for, why you are unique, how you can differentiate yourself from others in the space are some of the questions that need deep reflections.
Successful entrepreneurs think through things, they research and engage with customers to answer these question. They build their business and establish their core identity, which resonates with their customers as well as employees.
You cannot build a great business just by copying things from others. Businesses are built when they serve their customers, build excellent products or services and stay on top of their customer’s minds. Give them something that they will never forget about your business.
2. Offer Great Value
The only way you can be in business is by solving problems. If you don’t solve problems for people, you cannot survive in business. The most successful entrepreneurs solve problems that offer great value for customers.
When the marketplace has lot of competitors, the one that provides the most value wins. Creating a unique value proposition in your business requires identification of the customer needs. The economic value of your offerings to customers decides the value your product and services command.
When you bring value for customers, they will be happy to pay a premium for your services. Businesses cannot hide behind ordinary products and services. If there is no value, no one will use your offerings.
3. Tell a Unique Story
Every business has a unique story to tell. The successful companies are often built around great missions and vision of their founders. When your company can articulate its story and relate to the outside world in a positive way, it goes a long way in shaping your brand.
How businesses use social media, create stories that convey their deepest beliefs and shape the world reflects who they are.
Is your business telling stories in a compelling way? What is it about you and your business that will help others? Why you care to build your business? Telling stories will build a bridge between your business and the outside world. It will not just be another business selling products and services.
4. Become more Customer Centric
If you’re in a really crowded and competitive market, customers will have more options of choosing who they can deal with. In this case, it is the business that offers them great experience that oftens win them.
When customers can deal with your company in an effective and effortless manner, your business is the beneficiary. Today customers expect personalised services, extra care and attention from companies. The quality of experience and interactions will get your brand noticed.
The digital tools and technology make it easier for brands to interact with customers anytime anywhere. When customers feel valued, they stick around with your business.
5. Go With The Right Team
Today businesses need to deal with unprecedented competition and fast paced changes. The things that were valuable can suddenly become outdated. Your business needs to stay relevant and meaningful to your customers.
When you build a team with a great mix of skills and expertise, you give your business a great chance to succeed. A great team complements each others, contributes to the overall mission of the business and creates valuable progress day in day out. The teams are suitably rewarded when the business succeeds.
6. Feedback & Market:
The market never lies. It’s always correct. For any business to establish itself, it has to have paying customers. When customers pay for your products and services, they will tell you how much they value your offerings.
Many entrepreneurs start with intuition and market research data, but eventually it is the feedback from the customers that makes the difference. The market will provide you the right feedback and pointers for you to move in the right direction.
It is possible that you may not succeed with your first idea, but as long as you take the feedback and move in the right direction, you will make it.
7. Focus on Customer Success:
The only way your business will succeed is by making your customers successful. In other words, you have to do things that make your customers achieve what they want.
When your customers are delighted with your products and services, they will choose you over your competitors. When everyone in your businesses focus on your customers, your business will do very well.
Successful businesses understand and solve problems proactively. When you address customer’s pain points even before they ask them, you create value. Great entrepreneurs understand and provide solutions to the customer pain points even the unarticulated ones.
