Strategy: the tactical rim on the wheel
Strategy is the method you utilize to go about achieving the underlying goal of your startup. It’s recommended that prior to spending any money on your new venture that you first come up with the strategy or strategies you plan to utilize to make your startup successful. Devising the right strategy often requires a great deal of market research on the history of your competition, potential customer needs and wishes as well a taking into consideration the economic climate and cultural factors that could impact your startup.
- Low cost leader by charging less than the competition
- Luxury cost leader by charging more than the competition
- First to market by having your product or service in the market place prior to anyone else. This strategy is often referred to as the “first mover advantage.”
- Creating sustainable growth for a startup means that the new venture will eventually make more money then it takes to operate the company and that the profitability of this venture is possible over an extended period of time.
- Creating societal wealth means the company you are starting wants to create a product or service that will make the world a better place. The product or service you plan to create will enhance societal value. Educational institutions and schools are good examples. Another example is providing foods in the market place that are nutritional in value can have a major positive impact on a society’s health.
- Paradigm shifting brand for a startup means creating a product or service that revolutionizes the world! Examples include the first developers of airplanes that not only manufactured the airplane but also found a way to commercialize the product in the market place. An emerging product in this category is space ships. Although it may sound far-fetched today, there are several corporations today developing the design and plans for the day where by we get in our space ship the way we get in our car or on our bicycle. Some wealthy business owners are even today adding space ports to their garages.
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