1) Gain a position in your niche/industry that is defensible and allows you to shape surrounding influences.
- If you are a new small business in a large industry, focus on developing your core competencies and uniqueness. As these traits are developed, it will become harder and harder for someone to attack you.
- If you are starting in a new market/niche, or a smaller industry, or one that may be geographically segregated, you already have a somewhat defensible position. Build your core competencies and make sure you define who you are as a company, and who your market is. These fundamental elements will help you build the protection you need early on from new entrants, thus neutralizing a big threat many new, small businesses can face.
- In both cases, setup standard review times to check progress and make adjustments for advancing/defending your position. Review your goals (financial, marketing, conversion, etc.) and make sure your strategy is inline and working.
- At this point, making a plan for what role you want the web to play in your strategy is key. A web presence can be a defensible position built upon strong marketing, creative content, unique offers of value, etc.. It's the easiest second storefront that you can maintain and use to build a following.
- Always remember that the only true way to control your firm's destiny is to dominate the market. Build a position with this concept in mind.
- As a small business, it is especially important to keep an eye on competitors. When you find a company you are competing with, work to fight them without fighting. If they lower their prices, don't automatically lower yours. If a war of attrition ensues, you may both lose out and potential damage to the market can be done (think of kmart fighting wal-mart). Instead, stick to your core competencies, and learn to identify weaknesses that you can capitalize on.
- This is an area where a strong web presence can be a huge benefit. If you have one, and your competitor doesn't, you have access to new customers, new relationships, connections, marketing, etc., that your competitor is missing out on. The potential to lower costs is a single advantage that could mean the difference between survive and thrive or die and goodbye.
- The web can greatly assist you in gaining control of the most market territory with the smallest investment. Controlling territory rather than destroying competition should be the goal.
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