How to Overcome Business Barriers of Entry. Small businesses have always had trouble competing with big corporations. They don't have the funds or the manpower to compete, which can lead to some pretty significant barriers of entry. There are a few strategies that small companies can employ, however, to overcome those barriers and get their product out there to the masses. With these steps, you can overcome barriers of entry within your market.
Learn to overcome economies of scale. Simply put, bigger corporations have the means to produce products cheaper than smaller companies. To stay cost-competitive, small companies have to work twice as hard to get their products out to the market. CEO's may have to forgo taking a paycheck to minimize costs in the beginning. Being realistic about sales and production can also help keep costs low.
Get financial backing. The best idea won't do you any good without the money to back it up. Obtaining venture capital and loans is the usual method for many small businesses, but it require a sound business plan and some legwork.
Understand your customer base better than your competition does. You need to know what drives them to make the purchase, and then how to make your product more appealing than the competition's. If this seems like a tough task, focus on a particular group within your market at first.
Harness the power of the Internet. Small businesses don't have the networking power that big companies have, but thanks to the Internet, you can create connections and build up a network of your own. Offer incentives to other companies to help you build your business, and create partnerships that benefit both parties.