Exclusivity. Exclusivity defines what something luxurious could be. Or that's how it used to be at least. The trend under the spotlight at the moment is converting what used to be exclusive and bespoke and bringing it down to the masses. This is due to the great lapses in technology in recent times, and the speed at which this conversion has been taking place is absolutely astounding.
This trend has created a whole new market for the more demanding consumer-led economy. It comes from the principle of providing something used to be difficult and expensive to make to something easily affordable and doable. There are countless of examples here; remember how expensive and difficult it used to be to design and among a website in the late 90's / early 2000's? Then people like Weebly, Wix and Squarespace came along and made website making a piece of cake, for an affordable sum of money. Remember how exclusive and bespoke it was of a service to have your car fitted with the options of your choice? Then machinery got more and more advanced and car manufacturers like Mini offered its customers an array of customisation options! They used Just-In-Time methods and still were able to batch-produce their cars and provide prompt delivery to the customers. Another successful example? Uber! Without further ado, their slogan says it all; "Everyone's Private Driver" - again, bringing something that used to be exclusive down to the masses. Who would have ever thought that you could get a ride in an E-Class that might end up costing you less than one in a London black cab? The examples go on and on. This emphasises on the chance of opportunity this has created in the massively saturated markets we live in today!
The Reasons How And Why The Market Is Going In This Direction
Just by understanding how saturated the market is with ideas, you would foresee the need for a new market to grow. How? Well, it's the strong competitive nature of the economy. Businesses are fiercely fighting on pricing and pricing is becoming an outdated tool of consumer attractiveness. In other words, pricing is still an important factor of course in the game of competition, but it is by no means the only contributing factor in pitching a product as unique. This strong competition is pushing competitors to constantly innovate and improve further on their products. This nature of innovation has left consumers with a certain level of expectation. Yet, businesses are always looking to improve and stand-out and this market in contention is proving to be an effective one!
Branding Branding Branding!
As per the saying of : "location, location, location" that applies to realestate, "branding branding branding" is a fair example we could apply to our case here. It's a simple formula : The more attractive you make your brand, the more it will be so to your potential customers. Once that happens and start generating sales, these will convert into reviews and feedback that would build up your reputation. Branding can be a bit tricky to set a budget on, as it can be very costly and still not very effective. You should also not solely focus on branding and try and see if you can invest your money in another way that is more potential on giving you back returns. Remember, the more reviews and feedback from sales, the more credible you become as a seller; provided of course that the feedback is mostly positive!
Partnerships & Affiliations
This is a very effective way to create a mutual interest for both your partner(s) and / or affiliate(s) and yourself. Let's assume you want an additional channel of income to expand your the accessibility to your product(s)and / or service(s) and that spending a lot on branding and promotion is not an option. You best bet in this case would be to seek these partnerships and affiliations. Why is it good for you? It is promoting your brand and potentially leading to more sales. Why is it good for the other parties involved? Their members are getting a discount per say, and they are getting a 5% commission per sale. Of course, before agreeing on any figures you have to know your margins quite well - you don't want to find yourself in a situation where you would be making very insignificant contribution margins for the sake of processing orders. In some very rare cases, companies might opt in to sell a product or a service for a loss if they are looking to penetrate the market (using penetration pricing methods), or even without either conceding a loss or making a profit in the case of charities and non-profit organisations.
You have your idea, you have a planned approach for your plan of execution on your mind and you want to get things going. However, your entrepreneurial lifestyle could not afford lapses in infrastructure and this is why writing a business plan will help you figure out the things you need to have planned in writing. Without further ado, here are the things you need to know :
1 . It Will Structure Your Ideas.
Before having your business plan written, your mind is overwhelmed with ideas and excitement. Writing down your ideas will help you in brainstorming what your concept stands for. This will help in getting a better understanding of your target market, what needs to be researched, what unique selling points can be featured and so on. Outlining your ideas in a simple format is most definitely how you should start. Your crazy disorganised ideas will suddenly take shape into what builds up to become your concept as a whole.
2. If You're Looking To Get A Bank Loan, A Business Plan Is An Actual Requirement!
Obviously, if the bank is considering whether or not to give you a loan for your startup, they will need to be sure that you know what you're doing. They need to evaluate the validity of your application by measuring the potential behind your business plan and of course, the chances of getting their money back. Their decision is greatly based on your business plan and they act accordingly. Nevertheless, there are some other participating factors that may affect their decision such as your personal credit score if you were a main director of the company and the size of your loan. Focusing solely on the importance of the business plan, just having it clear and well structured in its format will massively contribute to your chances of being granted the loan.