The Advantages of Coming Up With a Business Idea
Though you can start a successful business that mimics an existing idea, you have several advantages if you come up with a brand new idea for a business. If you understand all the advantages before you launch your new business, you will be prepared to protect your ideas, methods and products from other entrepreneurs. You can put yourself in a position to move quickly to capitalize on all of your advantages.
You have less competition with a new business idea. Since you are the first to launch the idea, you don’t have to deal with competitors who offer lower prices or who have better cost controls in their business operations. However, once you put your idea out there, prepare for copycats. You must have a strategy for competing once others follow in your footsteps with ideas similar to yours.
Technically, if you get your idea on the market first, you have 100 percent market share. However, that doesn’t mean you automatically dominate the market just because you are first. You can protect your market share by offering quality products or services and top-notch customer service. Be prepared to move quickly to market your idea as broadly as possible, so that you can get as many customers as possible while you are the only one offering your idea.
Since you have no competition when you first launch an idea, you can price your product or service according to what you think customers will pay. However, if you set high prices that consumers think are too high, you will develop a reputation for price gouging, and leave yourself open to a competitor who comes behind you offering lower prices.
As you launch your new idea, you should focus some of your marketing efforts on establishing your brand as a recognizable and memorable one. If you can successfully associate your brand with your new idea, when competitors arrive you will already have brand recognition that they don’t.