The process of starting a new business can be intimidating on its own. But discover that there’s already a competitor on every corner, and it can be enough to dissuade even the savviest of entrepreneurs from entering the market.
Should you reconsider your business plan, or attempt to differentiate yourself enough from your competitors in order to succeed? Business Report recently asked three business leaders—Robin Kistler, interim director of the Stephenson Entrepreneurship Institute at LSU E. J. Ourso College of Business; David Day, owner of The Day Group; and Robert Rimes, attorney at Melancon | Rimes— to weigh in.
“Before powering ahead, consider what will make your business more unique compared to all the others in your market,” Kistler says. “Having a solid competitive advantage will be the key to outperforming all others. Will you compete using new technologies, a unique innovation or an operational effectiveness strategy? Be cautious if you plan to be the low-cost leader—it can be very difficult to sustain a business if competing on price.”
Day urges pressing forward, but also cautions against falling into what he calls the “low-price trap.”
“If Pepsi would have backed out because Coke had been up and running for 70 years before them, look at what they would have missed,” he says. “Create a brand that is relevant, attractive and engaging. Don’t fall into the low-price trap—anyone can discount their price, and you’re back to being no different, but at a lower profit margin.”
Rimes advice is also to power ahead.
“There is no one worth betting on and no one better to work for than yourself,” he says. “If you believe that starting your own business will make you happy and you have confidence in your abilities, then don’t hesitate. It may be a crowded field, but oftentimes it is crowded because there is a lot of potential for success.”
Read the full feature. Send your comments to editor@businessreports.com.
