If you are planning to start a new business now or just changing from one industry to another, then venturing into a competitive industry might be the best thing for you. Yes, you read that well, you should venture into a competitive business! The most common mistake that most people make is by believing that all competitive businesses have no room for growth or expansion. However, the truth is that venturing into a new industry has a number of advantages as explained below:
One of the reasons as to why you should venture into a competitive industry is that it makes you more creative and innovative. On the other hand, if you venture into a business with little or no competition, then you are likely to get too comfortable and hence less innovative or creative. Innovation and creativity allow you to create new ideas and hence you are able to grow or expand your business. However, you must always design your business plan well to ensure that you survive in the competitive industry.
Improved Customer Services
When you set your business in a competitive environment or industry, you are forced to compete for the few available clients with the other sellers. This means that you have to go an extra mile in your strive to get new clients. This means that you have to improve your customer services in order to attract more and more customers to your premises. A good relationship with your clients ensures that you have a few trusted and reliable clients that will always call for your services. This means that, even if your industry falls, you will always have some people buying from you.
Understand Your Market Better
When faced with a stiff competition, one is forced to try to understand who their real or core market is. Focusing on a specific geographical location or a group of people, let’s say the youths will enable you to improve your services to them. Understanding the specific group of people allows you to understand their needs and their tastes. With such information, you are able to improve the quality of your services as opposed to dealing with a large group of people that may not even be part of your target audience.
Operating in a competitive industry gives you a chance of learning and interacting with your competitors who have been in the industry for long. Most of your competitors are experienced and understands well how the industry works. Interacting with them ensures that you learn a thing or two regarding the industry and so you can learn how to run and expand your business. Starting a business in a less competitive industry means that you have nowhere to learn from and as such, you may never grow or expand your business. Failing to improve or expand your business is a sure way of collapsing faster.
As you can see from the above points, there are so many reasons as to why you should start your business in a competitive industry. Always start with understanding how a business operates and you will be surprised how far your firm goes.