A three-step plan to succeeding when starting a new business
Starting a business is difficult — and competing with other businesses to stay afloat can be even harder. In major cities like New York or Los Angeles, there are countless organizations that more or less offer the same service, making it seemingly impossible to stand out and find success in a crowded market. However, a competitive playing field shouldn’t serve as a deterrent for pursuing your business goals. Rather, there are three easy ways to stand out from the competition, win customers, and grow your business.
Find Your Unique Selling Point
When starting, and growing, a business in a crowded market, it’s not enough to simply offer a service. Rather, it’s essential that an organization create a unique selling point that sets it apart from the rest. For example, in the moving industry, there are thousands of companies that essentially offer the same service: moving stuff from point A to point B. However, these services can differ in a variety of ways, from the size of the company, to the range of distances the company can travel, their pricing models, and more.
In order to maintain a competitive edge against other organizations within your industry, it’s important to understand what your customers are looking for. Analyze the unique offerings of each key competitor and identify opportunities for your business stand out. In order for your organization to cut through the noise and shine in front of potential consumers, you should ask yourself: what does my client want that no other company is willing to give them?
Keep Your Pricing Transparent
In a line of business with numerous competitors, product and service pricing can be one of the largest determining factors for customers. When a customer is faced with countless different businesses to utilize, they are likely to jump on opportunities with discounts or lower costs — but these discount services are often riddled with hidden fees. To combat this confusion and create a positive experience for your customers, you need to ensure that your pricing model is transparent and consistent.
For example, when starting their business in a crowded field, the founders of FlatRate Moving realized that there was one thing their customers were looking for — a price quote that wouldn’t change during or after their move. As a result, they made this desire the centerpiece of their company and built a business model around guaranteeing one flat rate for moving services — with no additional costs or surprise changes. For businesses looking to follow a similar model, put yourself in the mind of the consumer: Would you re-use a company that utilizes bait and switch pricing?
Your Customers Are Your Best Resource For Growth
An organization’s customers are essential to its overall success – but this extends far beyond being a source of revenue. Rather, existing customers that have utilized your product or service hold the key to your continued growth and expansion. When connecting with your customers, it’s vital that you ask for their feedback — and that includes the good, the bad, and the ugly — for this is key in offering an excellent customer experience.
By listening to the wants and needs of your customers, organizations are better positioned to analyze key market demands and maximize opportunities for growth. If enough of your customers are letting you know they would have enjoyed their experience with your business more if you had offered X, Y, or Z, you can implement a solution that will satisfy your customers. By being able to anticipate the needs of your business prospects, your company is more likely to attract and retain new, loyal customers.
Putting Plans Into Action
Competing in a crowded line of business can make finding success a challenge, but it isn’t impossible. By creating a unique selling point, utilizing and implementing customer feedback, and maintaining transparent pricing models, businesses are better suited to outshine their competitors and establish dominance in their industries. As a result, it’s important to embrace healthy competition — so long as you know how to beat them.
Written by: Sharone Ben-Harosh, Founder & CEO, FlatRate Moving
Nice article on how to grow your new business in a crowded market! It’ll help newbies very much. It’s good to see someone put forth recommendations on growth strategies for a competitive market. As you point out, there are plenty of important tricks & strategies to apply in market categories & trends both. Great selection! Thanks for the information, it was very useful!