Market analysis part 4

Market review:

You must understand why this is important for you as a start-up. Every market to an extend has its own benefits and flaws. You already know what is the market you want to enter at this point so you will not spend the time identifying that. What you should figure out at this point, are those benefit and draw back that the market has. Who it benefit, and who it do not benefit. And even identifying how you could make it benefit you.

• This could be things like identifying whether there are lots of regulation. meaning that small businesses in that market will struggle while big businesses will afford the regulation thus taking more of the market share.

• Another could be looking at the current state of that market. Is it reaching its pick, meaning it is going to collapse soon. This will help you identify whether you should enter that market at that moment, or you should wait for it to collapse and enter after with low cost. You can do this by looking at the long-term statistics of that market.

• Even market reputation could be used at your advantages as a startup. If the market you are entering has a supportive reputation meaning it is encouraged, then you could have more accessibility to many places. One example of this is the renewable energy industry. Since it is seen as an alternative solution, it is widely encouraged and supported as an industry around the world. Meaning that most places want to attract most of it as possible. This give renewable energy companies lots of places to emerge due to their reputation of been beneficial to the environment and been a solution to energy problems.

Start-up cost:

This second stage should also be perfectly analysed. The reason been that Entering in a market as a start-up will obviously have lots of cost to it. The aim here is to reduce those cost to the lowest point possible. The reason why you want to identify what will be the costs or the liabilities at this point is to make sure that you can find a solution to reduce costs. This is the cost to start running your activity so you will be analysing this before you enter that market.

While it is true that by looking at what is the biggest liability that companies in that market faces, you will be given a clear view of the types of liability that you might face while entering the market. One of the reason why this is not recommended however is that it is very likely that the companies in that market each have their own way of operating meaning that it is very likely that they have different types of liabilities. So the smart thing to do is to look at how you will enter that market and identify what will be the cost that you will come across personally.

Choosing a wise dependence:

As you probably already know by now when you will enter a market there will be other factors that you will have to depend on which will be provided by other markets. This will be the dependency part. When you will analyse what are the factors you will have to depend on, Like the organisation that will supply you with the needed product or services that you will have relied on to sell your own product or service, you goal then will be to minimize the downsides .

Because you will be reliant on others, it will be important that you make sure that your reliance is permanent. This factor like all the other factors is one that you will impact you on the long term so choosing so taking lots of time into making sure that you make the wisest decision out of it is considered. If you don't make it as reliant as possible, then chances are your business will not benefit from it. Just like the opposite is also true.

Reliability:

When you choose a supplier your aim is to make that supplier one that will work with you in the long term and not one that you will have to keep switching on from time to time. Because when you are conducting any business activity, having one reliant market is key to make sure that your activity does not gets disrupt. This mean that you will have to look of one supplier that will be permanent. One thing that could be a benefit from this, is that the supplier could provide their product or service at fixed price meaning that you could be probably making profit without any cost been increased.

Choosing such a supplier could be rare or unlikely. But you know that your supplier will also be a business like you at the most likely. So what you will aim for is to have a supplier that is the same size as you. Which means that if you are a big business, you want your supplier to be a company that have the biggest market share in that market or in other words one of the big business in that market you will depend on as suppliers. If you are a medium size business or small business or a start-up.

Then you will want a supplier that will remain that same as when you choose them for a longer period. This is because when you are a start-up or a small sized business, then your aim is to scale your business an enlarge. So when you are a small business you want a supplier that you will be fully reliant on to scale your business. This could obviously mean that the more your business size increase, the more the cost the supplier will be asking will also increase since the bigger the business is, the more money it takes to run it.

So this means that you will either choose a supplier that might already be a large business in your depended market. Because as a big business they will already have all the infrastructure, resources and network across multiple places meaning that if you were to rely on them your chances of expanding will be more likely. Even if this could mean you might pay more than if you were dealing with another supplier it is worth noting that relying on the bigger business as supplier will be a short-term high cost for a long-term benefit. But as a small business or a start-up you will want to cut costs as much as possible.

So you will want to first choose a medium sized business in the market you will rely on as your supplier. Because you will start as a small company that will only have a small operating zone which could be locally or domestically so you will want a supplier that is also at the same size as you meaning only have the capacity to reach people locally or domestically. Since this will be effective at cutting cost as there will be no large-size operation requiring lots of costs. It will be more effective to start this way and scale your activity step by steps.

Which will also increase your supplier's size because your supplier will not only have you as their client. There might have lots of client as well. Meaning that the more your business size increase the more your supplier's business size will also increase since providing you with the product or service that you need to run your own business is their own business activity. In other words, the more you scale, the more they will also scale in size since you are their clients. And that is how to make one supplier a supplier you will depend on in the long run.

Insured plan (optional next step):

This factor is one you might depend on based on your own thoughts as it will not be considered a necessity according to you. however it could be one you might want to make. This is about choosing an insurance option when it comes to finding and relying on a supplier. You will obviously want a supplier on which you can rely on and which is always available each time you need them. But just in case, you will also want to have more of those types of supplier that are reliant and available each time you need them this is all about reducing the risk of your supplier affecting your business.

Since if you have one supplier that you completely reliant on, it will be a good start and less risky. The reason been that if you only rely on one supplier then if that one supplier malfunctions then your business activity will also malfunction for that matter you are uniquely reliant on that supplier but if you have more than one of those suppliers that you could depend on then it will be more safe as if one of those reliant suppler falls for whatever possible reason then you will have other suppliers you could rely on.

And the amount of supplier that you will want to have might also be based on your point of view. Having more than one could depend on your choice which could also be based on several factors like not having enough capital to support two supplier.

Success measures:

Not that all those factor will be done before you start your business or enter in the market you will be planning to enter. Which is why it is the starting analysis because you are analysing how the field in which you are aiming to enter is. In order to make sure that you prepare in the most efficient way. Therefore you will first collect information about that market. To see how you will be able to strategies how you will enter that market. Then identifying what is the biggest liability in that market to see how you will be able to cut costs.

Then identify what will be the other businesses or market you will depend on in term of the product or service or other tools that you will need to acquire to run your business. And after you have met all those key point, what you will then have to do it to visualise how it is going to play in that actual field you are planning to enter. This is visualising how likely or unlikely your strategies you have structured will work out. You will analyse the market statistics and see how it works out with your structure. Or you could identify all the things you have analysed in terms of the market this time.

This means you will focus on the businesses already in that market and make sure to focus on most businesses like making an average view. And see if it your cutting cost structure is more fit to adapt to that market than there's. Then focus on what is the most depended factor of that market or the factor that most companies in that market rely on and again identify if it is fit with your dependency structure. Look at what advantages your structure creates and this can also be done by looking at what disadvantages it solves.