The other day I was reading a report about the social strategy adopted by a leading shoe company in the world and one thing caught my attention, people are not just buying a product because it boasts of the best quality.
In a market, it’s been observed that if two vendors sell products of equal quality and one offers a better experience for the customer than the other, customers tend to buy from where they expect to receive an experience that will sweep them of their feet.
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This is not to say that customer experience is more important than product quality but the truth of the matter is, favorable customer experience tends to increase the patronage of vendors who offer them,
However, it’s been observed that vendors who sell products of lesser quality at premium prices never get patronage from returning customers even if they offer the best customer experience.
So if you are setting out to start out your own business, you must ensure you offer a quality product and an amazing experience for your customers.
However, beyond these two factors, there are other factors you must consider before starting out as a vendor.
1. Knowledge of the product/industry
Once you decide on the type of products you want to sell, you must endeavor to acquire the required knowledge and expertise to start that business. This might be expensive and require that you do a lot of research and planning but in the end, the knowledge you acquire will be the defining factor in how successful you will become in that industry.
2. An available market
Before acquiring the knowledge needed to thrive in your chosen field, you must be sure there is an available and ready market waiting to absorb your product. You don’t want to stock up on a product people will never buy.
In case you are taking upon an international product, you may have to understand the rules and regulations of dealing internationally.
Doing a market survey should reveal all the details that you may need about the market for your product or service. These are important checklists?
- The current size of the market
- The growth potential of the market
- The market share that you can expect to take
- The buying habits of the target audience
Cashflow is the oxygen of business and you need money to get started on your venture at all. Consider the cost of raising money to start your business and the amount needed.
Although a report says more than 70% of startups are funded with the personal savings of the owner but if your capital need goes beyond what you can personally provide, you can bootstrap from friends and family and perhaps offer them equity in your company or as a last resort seek for loan from your bank.