I often think, what is the nature of business? It’s common sense. So, before I begin to share, here’s a consequence that fits the situation of some people who want to start a business. Over the years I’ve often encountered passionate young entrepreneurs, and the words I dreaded hearing were: “My project will be a project that will change the world.” “As long as you invest, I will give you a thousand times ten thousand times the return in the next three years.” Whenever an entrepreneur says these words to me, I just want to laugh. Why?
Because while business theories are good when you look at them, and business ideas are often great when you have them. While the reality of the business world is full of arrows, and many entrepreneurs are overwhelmed. There is no value in thinking about things outside of their actual context.
For ordinary people starting a business, the most important thing is how to survive, and staying alive is the most practical. Therefore, it is not practical to talk too much about empty theories for the survival stage. Because the market is created, not imagined.
Therefore, as a marketer and entrepreneur from Atomee, the following sharing is to analyze how to improve the success rate of entrepreneurship from a practical perspective.
1. Investigation (Market Research)
Before starting your business, it is important to have a detailed understanding of the market you will be entering, and then consider whether to focus on the market. And here are the three questions that help you to figure out your market conditions.
- How many counterparts are there in the market?
- How profitable is the marketplace for merchants?
- Do the customer’s needs get satisfied?
All of this can be evaluated at the “break-even point” based on operating costs and sales volume. You need to calculate the approximate cost of doing business, and then estimate how many sales per day you need to break even.
With this “break-even point”, you will have a daily goal and won’t be running around like a fly on the wall. And finally find your cost-effective channels.
2. Probing (Market Testing)
Whether an industry is good or bad, not only do we need to conduct a lot of market research, but we also need to conduct scientific tests, one can see how the market conditions, and the other can see if they have the relevant ability and resources to manage the industry. For example, if you want to do e-commerce, the first thing you need to do is not to rush to decorate the store and find graphic design with a lot of nice pictures, but to purchase a small amount of products for trial sales in your circle of friends. If the sales aren’t good due to marketing issues, you may want to consider giving up.
3. Defense (Building Barriers)
If an industry is profitable and promising, it is a common business phenomenon that many people will be attracted to enter it. So, when a peer comes along, you should ask yourself:
If someone else did it, would they be able to keep going?
Wouldn’t it be a lose-lose situation if we had a price war with each other?
How many more customers would you have if you also used price promotions?
If there is a price war, how long do you think it will last?
Will customers continue to come back after the promotion stops?
If there were no peers, would your store be full of customers?
After you find out these questions’ answers, you are ready to run a successful business. And if you want to learn more about my business strategy, come to Atomee beauty deals and study this platform, you’ll find the interesting business.