In the previous article I outlined factors that affect young investors when they get into business. These include experience where they fail to use experienced personnel, finance where young investors fail to have financial discipline, over buying of assets that don’t match their cash flow and unnecessary expansion when their resources don’t permit. In this article, I shall focus on other factors that contribute to the downfall of young entrepreneurs. These include competition, strategy and marketing.
Competition Young investors might be tempted to find comfort zone whenever their businesses are prospering. They tend to forget that competition despite being health for customers, if they don’t plan well, competition can put them out of business. It is rare to find a line of business that is free of competition. The issue young investors should bear in mind is that some investors were already in the market when they started their new businesses as competitors. So when they get established, they should expect new competitors to come into play and should not take their being established as a They should always monitor their existing competitors and also monitor for new competitors.
Strategy Some young investors lack survival strategies when they enter into the market. They might be equipped with short term strategies and lack long term ones. Whenever a new company gets into the market, some clients who used to do business with old entrepreneurs might be tempted to give business to the new ones just to test new products and services. Others, especially those who would have been frustrated by old players, will definitely become regular customer of the new comers. So it is vital that new investors layout survival strategies in case of new competitors. It very important that they keep their customers satisfied before new competitors than to fire fight situation when the business starts to lose customers.
Marketing Young investors might go wrong on their marketing program. They are so many marketing initiatives that businesses can use, some traditional others modern. It is wise for young entrepreneurs to know exactly which marketing tool they can use at a given time. Due care should be given to marketing strategies that are old and tired. While business can’t totally drop traditional media channels like radio, television and newspapers in their marketing plans, they should know if their target clientele base is entirely dependent on newspapers, radio and television. The world has gone digital and investors should seriously consider online marketing as an all time tools.
This is where young entrepreneurs can consider starting business online and consider payments in new revolution means of payments such as cryptocurrencies.