What is competitive advantage?

The simple definition of competitive advantage is: “a condition or circumstance that puts a company in a favorable or superior business position”. In a nut shell, competitive advantage is what sets you apart from your peers. There are several different components that factor into your competitive advantage. Most of the time we think about price, but a company or business cannot be successful just by offering low prices and not making a profit. Your advantage may be your customer service, hours, and products. When it comes to competitive advantage I think back to the bank I used to work for, Bank Independent. A service like banking is met by many competitors. The number one focus for the Bank was customer service. Our priority was providing the highest level of service to our customer. Another advantage on our competitors was our hours. The Bank’s drive-thru hours were available from 8:30 am to 8:00 pm Monday through Saturday. These two components combined showed to be a competitive advantage for the bank.

Why location is important?

Where your business is located can play an important role in the success of your business. This success also depends on what type of business you have.  You may be running a home-based business, a retail, commercial or even an industrial business.  Each business location will very. My focus throughout my ETP courses have been a retail business. I have always dreamed of opening my own boutique. The location of a business like a boutique can be crucial. There are several factors that need to be considered when selecting a location.  Foot traffic is extremely important. The flow of customer in a retail business will be your success. Your location also needs to be easily accessible to your customers. A location that is tucked in a corner or on a side street will not receive the same attentions as a business located on a main street. Another thing to consider is your location in relation to your competitors. Being located closely to your competitors can have its pros and cons.  You may have an advantage if your prices are lower or you offer a product or service that is in higher demand. On the flip side, you make have to market more or more creatively. No matter what type of business you have or think about starting, location is an important factor to consider.

Is The Price Right?

One thing entrepreneurs must focus on is the price of their products or services. There are several different pricing strategies entrepreneurs can consider before deciding on a final price.  Two of the strategies are cost-plus pricing and competitive pricing. These two strategies can prove to be successful for entrepreneurs. Cost-plus pricing, in my option, is the simplest. This strategy simply takes the cost of the product and adds too it the mark-up profit desired. The mark-up can be anywhere from 1%-100%, depending on the cost of the product. On the other hand, competitive pricing is looking at the price of the same or similar product offered by your competitor. The strategy of competitive pricing focuses on the price that will make you the most desirable among your competitors. As an entrepreneur, you must do your research and choose competitors in your footprint. Entrepreneurs are charged with choosing the strategy that will be the most profitable for their business. After all, we  want the biggest bang for our buck.   

Your Brand...."People Ask For It By Name"

It's important to establish your brand. This is what people remember your product or service by. Think about cat food. Yes, cat food. What the first brand that pops in your mind? I bet for most of you, like me, its Meow Mix and their jingle, "Meow, Meow, Meow...... So good, cats ask for it by name". Meow Mix has mastered their branding to set them apart from other cat food brands. Something as simple as a catchy jingle can be your key to branding your product. Always think our side of the box, come up with a new or exciting way to brand your product. 

Keep Your Eyes Open

As an entrepreneur or business owner it's important to keep your eyes open to the latest and greatest ideas. Always be thinking about new products and services. Look at the growing trends, the consumers will let you know what they demand. Never get discouraged with yourself or ideas. Many entrepreneurs fail the first time around. The most important thing is to keep your head up and continue to push forward. Developing a product or service that will be successful won't happen over night. It will take time and lots of hard work. Never give up and....