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5 Reasons Not to Avoid Starting a Business That Already Exists

5 Reasons Not to Avoid Starting a Business That Already Exists

For an entrepreneur, one of the scariest ideas can be launching a business in a niche or market that already has plenty of competition. Startup founders might ask themselves, “What’s the point in doing this? There are plenty of other businesses already doing what I’m thinking about doing.”

Even if there may be reasons to stay out of the business, there are also plenty of reasons to go ahead and dive into the business. Here are five excellent reasons you should not avoid starting a business that already exists.

1. There is always room for improvement

While the competition might be doing a lot of things right, you’re sure to find things that they’re doing wrong. You can capitalize on that knowledge and build a business that does it better. For example, OrthoticShop.com was launched even though other businesses like Zappos were already quite successful in the industry. The founders knew they could do it better, though, and the success greatly exceeded their expectations.

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Brian Crane, founder at CallerSmart, adds “nobody dreams up and launches a brand-new business in my opinion. Instead, new businesses are iterations of previous ideas, made better. When Google launched, it was designed to be a better search engine than Lycos, Yahoo, etc. When Facebook launched, it was designed to be a better social network than MySpace, Friendster, etc. Starting a new business based on improvements you’d like to see made to an existing business is only natural.”

2. The market already exists

Marcus Miller, the managing director of Bowler Hat and wArmour, says starting a business that already exists could be described as “the easier and more sensible option. An existing business has existing demand and a ready made audience. If you start something new, then you have to work double hard to educate people as to why your business exists and why they should do business with you.” Miller’s two successful businesses are proof positive of this, since the market for Web design and Internet marketing, as well as cybersecurity and maintenance, are already strong fields with plenty of demand.

Casey McCallister, Director of Marketing at SmartShoot, believes that competition is a good thing. “Companies need competition to be successful. It pushes them to make better and more functional products. Microsoft and Apple both push each other to be better. Canon and Nikon. Marriott and Hilton. Without competition, companies have little incentive to innovate,” says Casey.

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3. You can put a unique spin on the product

Every business is different, and you already know that you have to differentiate yourself from your competition. A good way to do this, as well as compete in an existing market, is to put your own unique spin on the idea. For example, DuckDuckGo is a search engine competing head-on with Google. Google has very little concern for your privacy, tracking almost every move you make on the Internet.

DuckDuckGo, on the other hand, does not track any personal information, and that key difference has driven the company’s growth over the past couple of years. While DuckDuckGo will likely never replace Google, the search engine has carved out its own small and very profitable niche doing something similar to what Google does, but with a unique twist.

4. Businesses must evolve or die

Culture is perpetually changing, and businesses must evolve to stay with the times. The business that stops serving the needs of its customers, or continues to operate in a way that is neglectful or dismissive of the customer’s dignity, cannot last.

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Hans Enriquez realized that, and the idea that businesses must evolve or die was the impetus behind him launching LazyDaze. Enriquez “knew that the typical ‘smoke shop concept’ would need a complete revamp from its dark and dingy storefront,” and knew that he could bring that value to the market.

Enriquez launched LazyDaze to be a smoke shop with the look of Urban Outfitters, the customer service of Nordstroms, and the convenience and high quality products of Macy’s. This evolution resulted in a counterculture business that is thriving and opening new franchises regularly.

5. The need is still outstripping the demand

One company (or even a dozen companies) can rarely fulfill the needs of the entire marketplace for a product. There is usually an opening to market your product to others who have not yet made the leap, or have purchased a product from a competitor and not been totally satisfied (see point #1 above).

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This gives you, the budding entrepreneur, the opportunity to fulfill the need for the product, and do so even better than anyone else has done before. Yellowball, a digital marketing firm, entered a market that was already quite saturated. However, by ensuring they delivered the results their clients needed better than their competition, Yellowball was able to thrive even as a latecomer to the party.

Conclusion

There you go, five strong reasons why you should go ahead and open your business even if there is already competition in the marketplace. The free market economy is beginning to boom once again, and there is always room for new players.

If you play your cards right, your unique spin on an idea or improvement on an existing product could result in the next iPod or iPhone.

Featured photo credit: Pexels via pexels.com

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Steve Young

Entrepreneur and founder of AppMasters.co

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Last Updated on January 25, 2021

6 Reasons Why Perfectionism Kills Your Productivity

6 Reasons Why Perfectionism Kills Your Productivity

Perfectionism sounds like a first world problem, but it stifles creative minds. Having a great idea but doubting your ability to execute it can leave you afraid to just complete and publish it. Some of the most successful inventors failed, but they kept going in pursuit of perfection. On the other end of the spectrum, perfectionism can hinder people when they spend too much time seeking recognition, gathering awards and wasting time patting themselves on the back. Whatever your art, go make good art and don’t spend time worrying that your idea isn’t perfect enough and certainly don’t waste time coming up with a new idea because you’re still congratulating yourself for the last one.

1. Remember, perfection is subjective.

If you’re worried about achieving perfectionism with any single project so much that you find yourself afraid to just finish it, then you aren’t being productive. Take a hard look at your work, edit and revise, then send it our into the world. If the reviews aren’t the greatest, learn from the feedback so you can improve next time.

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2. Procrastination masquerades itself as perfectionism.

People who procrastinate aren’t always lazy or trying to get out of doing something. Many who procrastinate do so because perfectionism is killing their productivity, telling them that if they wait a better idea will come to them.

3. Recognize actions that waste time.

Artists and all creative people need time to incubate; those ideas will only grow when properly watered, but if you’re not engaging in an activity that will help foster creativity, you might just be wasting time. Remember to do everything with purpose, even relaxing.

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4. Don’t discriminate against your worth.

No one is actually perfect. We often have tremendous ideas or write things that move people emotionally, but no one attains that final state of being perfect. So, don’t get down if your second idea isn’t as good as your first—or vice versa. Perfectionists tend to be the toughest critics of their work, so don’t criticize yourself. You are not your work no matter how good or how bad.

5. Stress races your heart and freezes your innovation.

Stress is a cyclic killer that perfectionists know well because that same system that engages and causes your palms to sweat over a great idea is the same system that kicks in and worries you that you’re not good enough. Perfectionism means striving for that ultimate level, and stress can propel you forward excitedly or leave you shaking in fear of the next step.

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6. Meeting deadlines beats waiting for perfect work.

Don’t let your fear of failure prevent you from meeting your deadline. Perfection is subjective and if you’re wasting time or procrastinating, you should just finish the job and learn from any mistakes. Being productive means completing work. You shouldn’t try for months or even years to perfect one project when you can produce projects that improve over time.

Featured photo credit: morguefile via mrg.bz

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