There is no other way to put it: starting a business is tough. There are many factors that you have to consider. You need to find a strategic location where a lot of potential customers can flock to you. Hiring people can be a gamble, as you would not know the behavior of each. There is a lot at stake, with money as probably the most important one. This could be from your hard-earned savings, a bank loan, or a combination of the two. Either way, months or even years of planning could help bring you to success.
The more you study about it, the less risk you will be taking. It would be great if you had a marketing strategist at your side, acting like a commander scouting the battlefield. There are a lot of unknowns out there, and how you tread could spell the outcome for your business.
On a battlefield, you will have opponents. In business jargon, they are called competition. Dealing with them is something that you cannot ignore.
Who Is Your Competition?
Your competition is someone who deals with business in the same space as you. The world has seen many rivalries in different industries throughout history, and some of them are still going at it even today. On the beverage front, Pepsi and Coke are seemingly waging an endless battle to win fridge space. The smartphone landscape has witnessed the fierce back and forth between Samsung and Apple. These companies are always trying to get ahead of each other by offering products that are familiar and innovative. They offer compelling features or price their products competitively.
Competing does not always have to end up in total defeat. The companies mentioned have been relevant in their own markets for years, if not decades. One of them may hold the lead against the other at one point, but all of them are still standing today.
For those who have dreams of owning their business, it goes without saying that you should take the competition into account. You should know if the market you are entering is crowded or not. The former means that there are a lot of participants in the arena, all fighting their way to the top, or at least even just for relevance. This is what you call the red ocean.
Red is the color of blood, and with the sight of it, you should know that you are getting yourself into something messy. Make sure that you are armed to the teeth here. You should be confident that the quality of your product or service is something that is hard to beat. You should also be ready for losses on your end; you should have deep pockets to cover that.
The opposite strategy is to get away from where the fighting is and explore the other areas of the ocean. The blue water indicates uncharted waters, and you can establish your presence here ahead of everyone. If you think that you have something that is highly innovative and can create a new market segment, this strategy is for you. But you also have to know that you will be treading into unknown territory. This means that you are still taking a big risk with this strategy.
There is a place for everyone in the world of business. Arm yourself with the knowledge and confidence so that you can get your company up and running. That should prepare you, whether you want to sail toward the red sea or the blue sea.