Many business owners believe that having a first-mover advantage can help their business succeed. Some people will try to start a similar company, but the fear of failure often holds them back. However, the first movers are braver because they have already set up shop and put out their shingle.
How First Mover Advantage Can Help Your Business Succeed
If you are a startup with a business idea in mind, here’s how being the first mover can help your business succeed.
1. Brand Name
If you are the first to enter a business or industry, you almost automatically become an instant brand name – and the most prominent brand at that. This is how Krispy Kreme created such an extensive and loyal customer following before their doughnuts were everywhere.
They were one of the very few businesses selling donuts until Dunkin’ Donuts decided to compete. Before then, however, no one could pass up on a hot Krispy Kreme doughnut because they had no other options for such delectable treats. If another company comes in and starts selling what you offer, people will still flock back to your store because of the originality and knowledge attached to your brand name.
2. Market Awareness
Being the first mover means you are also creating awareness for your product or service. You will find there are numerous markets out there that have never heard of what you offer, while others may not even be aware of its existence. Being a pioneer in this industry automatically makes people notice because they will see your company as an authority figure. This is how Dell Computers became so successful over the years – their brand name and market awareness saw that they stayed at the top despite coming into fierce competition later on.
3. Market Share
Pioneering in any industry not only results in brand building for your business but also gives you an edge when it comes to earning market share. There will always be new markets and customers you can tap into, provided you have the skills to give them what they want. This is why when an industry becomes too competitive; many successful companies use it as a chance to branch out and explore new places to go. For example, Google branched out of the search engine market to create other ventures like Gmail and Gtalk.
4. Customer Loyalty
Marketing skills are very critical when it comes to customer retention. When you have successfully tapped into your target market, new customers show up, but it is up to you to keep them coming back by providing quality goods or services that will meet their expectations every time they shop with you. This is how many businesses stay afloat despite stiff competition – they have built a name for themselves through marketing, resulting in high customer loyalty rates, which mean more profits for better business development.
5. Industry Expertise
Being the first mover also gives your company an advantage in staying on top of the trends in your industry. You are likely to hear about the next big thing before anyone else does, which means you can be ahead of the curve. If you have what it takes, this gives you an excellent opportunity for successful expansion – just look at how Facebook managed to take over social media with record speed.
Being first is not an easy task, but it can help your business succeed. However, the most important step is planning and hiring employees who are up for the challenge. This way, they will work hard to ensure that forward-thinking pays off for everyone involved.
Here Are Some Points Which You May Want To Consider Regarding First-mover Advantage for Your Business Venture:
As long as the product or service is good, it should find its audience. If not, then there’s always time for improvement.
1) Be Ready for Competition –
Having the first-mover advantage doesn’t mean that no other company will join the market ever again – The truth is, even if you’re the first one, there are bound to be others who will follow suit. However, if your product or service is better, you should have no problems staying ahead of the competition. Staying ahead of the competition will give you a greater chance for success.
2) Review Other Successful Businesses –
The best way to learn about your business needs is to study successful companies in the market. If they could succeed with specific strategies, think about implementing them into your business plan. Not everything that works for other companies will work for yours, but there’s always something new to learn!
3) Improve on Ideas –
Even if you come up with the idea that has never been done before, it doesn’t mean that you’re guaranteed success just because it’s never been done before. If it’s not executed well, then you’re going to find yourself in the same boat as your competitors.
This is why you need always to keep trying to improve on ideas or come up with new ones if the old ones aren’t working out for you – Each picture is a learning experience.
4) Don’t Give Up Too Soon –
Because there are so many variables with each business venture, don’t give up too soon because of initial failure. If your first-mover advantage isn’t getting the job done, then think about what other strategies you can implement instead. First movers have an improved chance for success over those who join later on after all the groundwork has already been laid with consumers and suppliers.
5) Patience Is Key –
Building a business takes time and hard work. Just because you were the first one in your market doesn’t mean that people will come flocking to your business right away – You need to learn about what works and what doesn’t, how much it costs you to produce each item sold, build relationships with distributors, etc. It’s not something that happens overnight. If you’ve been given a great opportunity, use it wisely and don’t squander your chance for success.
There’s no such thing as a guarantee for success but being the first mover in your field is a step in the right direction to help you and your business succeed. As long as you’re making every effort necessary and keeping up with trends, you should have everything it takes to succeed.
Just remember, there’s always room for improvement, so don’t be afraid of trying new things – just because you tried something once and failed doesn’t mean that it won’t work out if given another shot. You might find yourself surprised at how well it works out the second time around!
In Conclusion:
First Mover Advantage can be a massive help to your business, but you need to ensure that it’s applied in the right way and at the right time. It does not guarantee success but only gives you a greater chance than those who join later.
With so many variables involved with running a successful business, it is always best to keep an open mind and never give up too quickly. There is much to learn from each venture when applying a first-mover advantage for your benefit.
As long as you’re ready to compete, prepared for other businesses to jump into the market place and willing to revise your business plan when it needs modification, then a first-mover advantage can be a great help in achieving success. Be sure to use this opportunity wisely, and don’t give up too soon because of initial failure!
