Many people start small businesses, despite their lack of experience in marketing and other related business components. We can’t blame them for that, in fact they need to start from somewhere, especially if they still lack the business knowledge. However, due to their lack of experience, it is important for them to know that mishaps and failures will likely to happen. All they can do is to limit the severity of these problems. Small business owners should know that buyers approach their buying decisions rationally and many of them gather relevant facts, especially when it comes to major purchases.

Modern consumers are smart enough to analyze trade-offs in products and they will make multiple comparisons. Consumers will always look for alternatives and lower costs could become their primary consideration. So, it is important for new business owners how they can meet this tendency rationally. However, for some products, the buying decision can also be based on emotional tendencies. Without understanding these tendencies, it is possible for us to miss a huge portion of the market. In reality, many consumers are looking for a magic answer that would address to their problems.

How New Businesspeople Could Survive in a Highly Competitive Market

When consumers are convinced that a product will solve their problem, they will immediately buy it. So, despite their lack of experience, new business owners should be able to improve sales in the market, because their products are able to address specific needs. For many businesses, social media is the most chosen medium for advertising, compared to TV and newspapers, which can be costly and less targeted for specific group of potential customers. With social media, new businesspeople are able to communicate with narrowly-focused consumers, so they can be convinced to purchase specific products.

New businesspeople should know how to deliver the “knockout punch” to effectively close the deal. By doing this, sales can be concluded immediately. However, businesspeople should be in the right place and the right time when they deliver the punch. It means that businesspeople should move fast and contact a prospective client at the right time and with the right product. Customers’ requirement should be addressed immediately. When we do this, it is virtually possible to eliminate the competition, because we are dealing exclusively with a client, before he has the opportunity to approach other sellers.

New business owners should deal with the narrowly defined market and highly local marketplace. This is often the most appropriate step that they need to choose. This is necessary because there are so many products in the market that we need to choose. The modern marketplace is overflowing with the competition and if we only offer mediocre products, we could only attract disinterested yawns. In this case, everyone could be our customers. We may need to define potential customer groups and we should learn as much as possible about the marketplace. This is the only way new businesspeople could survive in the highly competitive market. Price should be seen as everything and customers will likely to go where prices are the cheapest.