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Competitor one-upmanship: Know your Enemy

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Business is a chess game. As you plot your moves, you also need to anticipate your opponent’s plans, and block them — knowing full well that he is doing the same thing. Sun Tzu said it best: “If you know your enemy and know yourself, you need not fear the result of a hundred battles.”

This kind of strategic thinking lets you stay two steps ahead of competition. The first question to ask is: who are my competitors ? Direct competitors offer the same product or service to the same market, e.g. two travel agencies selling tickets to a luxury cruise. But you also deal with indirect competitors, who meet the same need through alternative ways, e.g. a website offering cheaper tickets, since it removes the cost of a travel agent. Both cut into your profit because customers will choose only one way to meet one need.

For this reason, company formation experts recommend that you invest in understanding your consumers’ needs and values so you can convince them that you provide the best option. You must also study how your competitors are already meeting those needs. What will make your product or service different from theirs? How are they perceived by the consumer, what are strengths and weaknesses, and how can you take advantage of those weaknesses to highlight your own strengths?

Knowing your competitor also means identifying his potential — unused opportunities and resources that may not be a current threat, but may develop into one once he makes the necessary investment. Many financial consultants say that the cost of investing in opportunities is far less than what it would cost once competition has made its move on those territories.

The anatomy of a successful entrepreneur (Part 2)

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Company formation professionals and business solutions experts agree that the entrepreneur plays a very big factor in the ultimate success of any start-up business venture. The successful entrepreneur must acquire certain characteristics that would ensure that he has the right disposition to handle his business and face any obstacles that may come his way.

Here are some more characteristics a successful entrepreneur must possess:

Goal setting – The willingness and ability to set realistic yet specific business goals. It also means having the foresight to make the necessary plans to achieve the goals that have been set.

Flexibility – The successful entrepreneur must be the definitive jack-of-all-trades and show how flexible he is. He must be able to handle the various responsibilities and roles that is required when starting a business like marketing, finance, research and sales. Aside from this, the entrepreneur has to handle his staff and still be conscious about the various decisions that have to be made – are real juggling act.

Leadership – the successful entrepreneur must have the skills to lead his team to success. Strong leadership skills will enable him to set goals and targets and inspire his staff to achieve them. A true leader must also be able to share his vision to his staff and unify their actions in pursuit of that vision.

Independence – This is a trait that all entrepreneurs should have in the first place because it is rooted in the desire to be their own bosses – hence the decision to start their own businesses. An independent streak also means being able to go it alone especially during the crucial start-up phase where the entrepreneur must do everything on his own.

Perseverance – Focus and determination is a crucial formula for success. The successful entrepreneur must never be discouraged by setbacks or failures.

The anatomy of a successful entrepreneur (Part 1)

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There are many factors involved in making a business successful. But there is a common misconception that most of the factors that do matter are all external – part of the environment of which the entrepreneur has no total control. But both company formation and business solutions professionals agree that the most important factor hits much closer to home. It is the entrepreneur himself who is the initial barometer of business success.

In order to prepare for success an entrepreneur has to acquire the following characteristics:

Innovation – Entrepreneurs should have a creative mind and be able to innovate with the acute sense to see opportunities and act accordingly. They should know how to create a market for themselves – a niche where they can thrive.

Passion – An unflappable belief in what he is providing or selling. The entrepreneur should know his product or service by heart – as well as knowledge about the market and his competition.

Courage – The ability to make the though decisions and accept whatever challenge must be faced. There must be an unshakable conviction on the business even if the going get tough. This also means also having the guts to take the right but unpopular business route even if some people may discourage him from doing so.

Commitment – The ability to invest the time, the energy and the resources in order to make the business succeed.

Judgement – Be able to identify which risks to take and when to take them. This also means knowing what aspects of the business to prioritise.

A few reminders in keeping a good profit margin

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Regardless of what the original goal or motivation was for setting up a business it is a given that a business exists to make money. A business that generates insufficient revenue will obviously fail. With business solutions experts saying that one-third of new businesses fail within three years, it really drives home the point that managing profit margin levels is an important consideration for business owners.

What businesses charge for their products or service plays a huge role on the profitability and success of a business. Too much and a business loses customers, too little and profits will be to low to maintain operations. Striking a perfect balance between profit and price is the key to success. Here are some things company formation professionals would usually advice business owners in order to achieve this balance:

Reduction of operating costs – Try to find out if there are certain areas in your business that can still operate smoothly with reduced operating costs.

Look at the supplier base – Determine if the business is paying an external supplier for a service that could be done internally without sacrificing quality.

Look at the expenditures – An internal audit of costs will help in identifying possible problem areas.

Negotiate with suppliers – Suppliers may give your business perks and discounts if you ask for it. Also try to buy in bulk to get a cheaper price.

Look at the competition – look at your supplier’s competitors, they might offer better rates

Give incentives – offer rewards and bonuses to employees/staff who surpass sales targets, and also give incentives to customers who bring in new clients.

Honda Accord 2009

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Well, after two-months of hard work I think I’d finally and happily end my car search by purchasing the Honda Accord 2009.  I’ve been to many car lots these past weeks, my feet hurts, it’s cold, I’ve shook many-a-hands that offers me the “best” deal available.

I think the Honda Accord 2009 is great car.  It’s good looking to start with and the most basic of model in this line has all the features I’m looking out for (which by the way on other car brands are an added option).  I won’t bore you with my search criteria, I’d really just like to share my enthusiasm.  It’s not the top-of-the-line model in that line, but I could always opt to get those optional “wants” at BestBuy (eg. the navigation GPS unit, DVD players etc.

Let me share to you though one of the websites that helped me narrow down my options.  Edmunds.com is always a good place to start as its car database seems to be the most frequently updated.  Start your car-education there… and if you’re in the market to get one now, after Edmunds.com, do the car lots!