When most people are asked this question, it seems obvious to them that it is a stupid question. They automatically think competition is about beating the other guy trying to compete, but this is really the case.
Let’s take internet marketing as an example. Indeed, competing on the World Wide Web has given the small ones just as much opportunity as the big ones to connect with all buyers looking for products. This new Internet dynamic allows the small merchant to appear just as credible in the supply chain as the larger ones.
The emphasis in business now with web commerce is far from structured businesses with heavy real estate based overheads. Low-cost, nimble, lean merchants can now partner with manufacturers, bringing their products to extended markets that were previously hard to find and even harder to supply. In fact, manufacturers now often find that agile partner relationships not only expand their business operations, but also have the dual benefit of lowering their cost of sales.
Now, every merchant in business wants to achieve maximum sales and revenue at the lowest cost, but if the merchant in question wants to stay agile and relatively small, independent and lightly structured (and many do) in order to enjoy an improved lifestyle with a good work-life balance, then it may be worth a pragmatic cooperative approach to complete it.
Therefore, if you are just starting out in the field of virtual business, it is important to know what you want from your web-based business.
1. Are you in business just to make a good independent living, or are you aggressively trying to build the next challenger for Microsoft and Google?
2. Do you want to row your own canoe or are you happy to work with others to take advantage of the opportunity?
3. How well do you know your chosen niche, is it a passion and are you really connected to it or is it just an opportunity you think you saw in an area you know little about but are sure is big? Be honest with yourself here, it’s crucial that you understand what you’re getting into, both the downsides and the upsides.
4. Who else is in your niche, how are they promoting themselves and how well are they doing?
5. Do you have the finances to do this? Internet marketing is probably the lowest cost business to start, but it’s not free. You will probably have to purchase software products and services. You need to understand how quickly and at what level you will generate business if, like most people, you are not yet financially independent and need a regular bank income to pay your bills. It seems obvious, I know, but it always amazes me that otherwise quite rational beings jump into business gleefully burning their bridges as they go and find their big idea doesn’t fly as well as they thought. Lesson here, as before, be brutally honest with yourself, have you done all the necessary research and could or should you start at your leisure?
6. Are you quitting smoking? Again, be honest, web businesses are rewarding if done right, but any business can be destructive if not set up correctly. In business, once you’ve done your research and established the facts and are sure you’ll be successful, adopt a Winston Churchill attitude and never, ever give up. If it is correct, it will come.
7. When you have satisfied yourself with all the above questions, you will be in a good position to know what you need and what you really are. This is when you decide who your friends and enemies really are. Often times they will be different than you expect, perceived enemies may in fact become joint venture partners or mentors who can help your business expand without harming themselves, allowing for mutual benefits such as splitting of costs or the dual approach for both parties. At worst, they can teach you by example what to do and what not to do by monitoring your success or lack of it.
So there you have it, don’t keep a closed mind, always observe and always question remembering to question yourself as vigorously as others.