Summery: Learn from the small
business mentor why you have to be the first, best or different in order to grab and keep
your share of the market.
"You either have to be first, best, or
different."
I found this quote on a quote board so I don't know what
country music singer Loretta Lynn was referring to when she said it, but it seemed a
perfect summation of what your business must be when you're starting out.
Being first is optimal
If you've planned carefully you can flood the market with
your product or service immediately after opening and your business has a low barrier to
entry. Unfortunately, that's not the case with most companies.
There can only be one first in any category or industry.
You were either first or you weren't.
Being first won't ensure your success if better and
different comes along before you've established yourself.
There's only one best
Of course, best can fluctuate from year to year given any
number of factors. We see this in the car industry: "Won best in it's class in
consumer tests." We see it in TV show ratings. One year everyone's watching Big
Brother the next year they're hooked on Survivor.
So to stay the best, you have to anticipate what the market
needs and wants and keep your current customers happy or they'll go looking for the
companies offering something different.
I'm reading Martha Stewart's book, The Martha Rules in
which she outlines ten business principles for entrepreneurs. Aside from her too recent
mentions of her stay in the big house, the book contains solid basic business advice.
In the book, she says the way to be successful is to take
something that people already do and figure out a way to make it better. It's obvious, she
has built her whole empire on that premise.
Think about it...everyone entertains. Martha wrote a book
about how to entertain better. Martha's program regularly shows people how to be better
and different doing ordinary things.
She's bringing in millions of dollars per year selling
people tips on things they already do-clean house, cook, garden and entertain. It's
brilliant.
In her book, Martha claims she was the first person to
write a book on entertaining. If that's true, then she covets the "first"
category for her industry.
She is also seen as the best in many of the categories she
represents. I think Julia Child is still considered the best for the cooking category.
Something that often happens, is that the first also grabs
the best category because they're the ones who set the standard for everyone else who
followed.
Be different to thrive
Given first and best are going to account for only one or
two companies at the most that means everyone else had better be different if they plan to
survive.
An example of this principle is the mp3 player. I received
one of the nifty, big iPods that holds a gazillion songs and plays video for Christmas. It
was a requested gift. I didn't want just any mp3 player, I wanted that particular one.
Why? Because it's the best.
A word about "the best". The best doesn't mean
that the product is actually better than the other products available, it's that the
consumer believes it's better.
A great example of this is Apple and Microsoft's early
operating systems. Apple's technology was better-ask just about any technology guru, but
the public believed Windows was better, so Windows outsold Apple. It's all about
perception.
With Apple's mp3 products being perceived as the best and
the first mp3 player introduced, Eiger Labs MPMan, no longer being available then other
mp3 developers have had to go the different route, but none have been able to steal much
business from Apple.
Being different keeps companies in the game and receiving
market share even if they weren't the first and aren't the best.
Think about Howard Stern-he's not the best radio talk show
host, but he's definitely different.
Or what about Trader Joe's? They aren't the best grocery
store, but they carry different products from other grocery store chains.
Another great example is Victoria's Secret. While
department stores hide the "unmentionables" in the corner of their top floor,
Victoria's Secret decided to be different and hang them in the window right in the middle
of the mall and even paraded them around on National TV.
So what are you?
Were you the first? Was your product the first of its kind?
Are you the best? Or does the market perceive you as the best? If you answered no to the
first two sets of questions then you better have an answer to the third option:
How are you different from who's first, who's the best and
everyone else in your industry?
(c) 2009 Leah Grant Enterprises LLC |
