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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 May 7, 2021

Productivity Boost: How to start your day at 5:00 AM

Productivity Boost: How to start your day at 5:00 AM

I have been an early-riser for over a year now. Monday through Friday I wake up at 5:00 AM without hitting the snooze button even once. I never take naps and rarely feel tired throughout the day. The following is my advice on how to start your day (everyday) at 5:00 AM.The idea of waking up early and starting the day at or before the sunrise is the desire of many people. Many highly successful people attribute their success, at least in part, to rising early. Early-risers have more productive mornings, get more done, and report less stress on average than “late-risers.” However, for the unaccustomed, the task of waking up at 5:00 AM can seem extremely daunting. This article will present five tips about how to physically wake up at 5:00 AM and how to get yourself mentally ready to have a productive day.

Many people simply “can’t” get up early because they are stuck in a routine. Whether this is getting to bed unnecessarily late, snoozing repetitively, or waiting until the absolute last possible moment before getting out of bed, “sleeping in” can easily consume your entire morning. The following tips will let you break the “sleeping in” routine.

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Relocate your alarm clock.

Having an alarm clock too close to your bed is the number one reason people simply cannot get up in the morning. If your alarm clock is within arms reach of your bed, or if you can turn your alarm clock off without getting out of bed, you are creating an unnecessarily difficult situation for yourself. Before I became an early-riser, there were many times that I would turn off my alarm without even waking up enough to remember turning it off. I recommend moving your alarm clock far enough away from your bed that you have to get completely out of bed to turn it off. I keep my alarm clock in the bathroom. This may not be possible for all living arrangements, however, I use my cellphone as an alarm clock and putting it in the bathroom makes perfect sense. In order to turn off my alarm I have to get completely out of bed, and since going to the restroom and taking a shower are the first two things I do everyday, keeping the alarm clock in the bathroom streamlines the start of my morning.

Scrap the snooze.

The snooze feature on all modern alarm clocks serves absolutely no constructive purpose. Don’t even try the “it helps me slowly wake up” lie. I recommend buying an alarm that does not have a snooze button. If you can’t find an alarm without a snooze button, never read the instructions so you will never know how long your snooze button lasts. Not knowing whether it waits 10 minutes or 60 minutes should be enough of a deterrent to get you to stop using it.

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Change up your buzzer

If you use the same buzzer day in and day out, you begin to develop a tolerance to the sound. The alarm clock will slowly become less effective at waking you up over time. Most newer alarm clocks will let you set a different buzzer tone for the different days of the week. If you change your buzzer frequently, you will have an easier time waking up.

Make a puzzle

If you absolutely cannot wake up without repetitive snoozing, try making a puzzle for yourself. It doesn’t take rocket science to understand that the longer your alarm is going off, the more awake you will become. Try making your alarm very difficult to turn off by putting it under the sink, putting it under the bed, or better yet, by forcing yourself to complete a puzzle to turn it off. Try putting your alarm into a combination-locked box and make yourself put in the combination in order to turn off the alarm — it’s annoying, but extremely effective!

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Get into a routine

Getting up at 5:00 AM is much easier if you are doing it Monday through Friday rather than sporadically during the week. I recommend setting an alarm once that repeats everyday. Also, going to bed at about the same time every night is an important factor to having a productive morning. Learn how much sleep you need to get in order to not feel exhausted the following day. Some people can get by on 4-6 hours while most need 7-8.

Have a reason

Make sure you have a specific reason to get up in the morning. Getting up at 5:00 AM just for the heck of it is a lot more difficult than if you are getting up early to plan your day, pay bills, go for a jog, get an early start on work, etc. I recommend finding something you want to do for yourself in the morning. It will be a lot easier to get up if you are guaranteed to do something fun for yourself — compare this to going on vacation. You probably have no problem waking up very early on vacation or during holidays. My goal every morning is to bring that excitement to the day by doing something fun for myself.

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As I previously mentioned, I have been using these tips for a very long time. Joining the world of early-risers has been a great decision. I feel less stressed, I get more done, and I feel happier than I did when I was a late-riser. If you follow these tips you can become an early-riser, too. Do you have any tips that I didn’t mention? What works best for you? Let us know in the comments.

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