Is a fallacy and a danger for business thinking!
I was chatting with a dear friend over the weekend about business opportunities he was interested in trying. Each idea had great possibilities and some even had little risk. I then asked him about the competition in these categories of opportunities. I began, as he calls it, the inquisition.
Who is already playing in this arena? What can you offer that is different or unique that can make you stand out? What makes you the “Go-To-Guy” for that service or product?
Our conversation took many twist and turns as they seem to do in conceptual conversations. In the end, the majority of his opportunities the competition was established. The key reason, like any entrepreneur, he wanted to venture into these markets was the opportunity of rapid growth in a new idea.
After a few hours, I present a simple idea that I am always sharing with small businesses and entrepreneurs…
Reduce the Pain, Increase the Gain.
In a world of similarities, complex offerings and unique opportunities, the player which starts strongest usually controls the market even if their offering is very similar to the competition. By reducing the pain for the customer to acquire your product or service, you increase the acquisition and thus increase the gain of market.
Too many times, a great idea or offering is killed simply because the consumer must go to great pains to acquire. The less pain it takes to achieve the desired outcome the faster your product or service gets into the market.
To see if you would have an opportunity to compete, outline, or in my case, draw out the competition’s method for the consumer to acquire the outcome. Then fill in all the pain points that a consumer must endure. Now, figure out where you can either by-pass or eliminate these pain points. If you can’t reduce the pain, you have little chance of building a strong following and limited market gain.