The RANT about RENT

Many business enthusiasts face this dilemma once they decide to open up their business establishment, specially those who are on their first business venture. There are a number of pros and cons that renting offers to your business but these pros and cons does not apply to all.

What I would enumerate are the pros and cons of renting in a feasible place that would attract your target customers at the same time, gaining market popularity. This might not be applicable to places that was poorly established yet incurring monthly rent.

Observing the place would minimize the failure in deciding the perfect location for your business and once you have that viable location, you now have to consider these factors:

PROS:

1. You are near and visible to your market.

This has been the best benefit of having a viable place. Since you are near to your target market, you can directly sell to them at their convenience. Aside from that, they would also be able to know you and what products or services can you offer on the table.

2. Sales volume would be unlimited.

Being in touch with your clients or customers, you now have unlimited opportunities looming around. You might even exceed your sales projections on the area once your products or services are known to be of high quality at a viable price.

3. More convenient than having a home business.

Although home business is a good idea, having a  specific place to do your business is much better since you would be away from your home which means you cannot be distracted while you are doing your thing at home except during emergency. Imagine the benefit of having a good night sleep which cannot be enjoined by those who have their businesses at home since they might be disturbed any time of the day.

CONS:

1. The rent might be too high for your business.

This might be the issue of wholesalers, distributors and retailers. They only rely on their mark-up in determining whether such mark-up on their products would be able to cover up their operating costs. Once the rent is eating up your potential profits, might as well look for a cheaper one than loosing your business.

2. The place might not be suitable for your business.

Another dilemma that you might realize when you are already starting the contract with your lessor. Imagine if you are into a restaurant business and your place does not even have a sink. Adios! Amigo! This could be well avoided if you really know what facilities do you need and how big. You should just not look the place on a market’s perspective but also on how you would operate on such place.

3. There are too many competitors on the area.

This scenario might prompt you to look for another place, but if you know you have an edge over your possible competitors, then proceed. Having too many competitors might also mean that the area is not dominated by a sole provider but rather, by everyone offering the same products or services. If the area is dominated by one, that is much more of a red flag than having a lot of competitors on the same segment.

 

Considering these factors might give you a hindsight as to whether to pursue or to decline your lease contract. These are only the general factors you might want to consider, but this list could be your guide. I may have not cite everything as possible so if you might have questions or ideas, feel free to use the comments. Thank you for reading.

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Business Identity

After being in various business conferences, seminars and conventions, I have observed one common denominator among successful businessmen, they have established the identity of their business. No successful businessman have grown without having a distinct identity specially to their market. Be it good or bad, best or worst, each and every business should have an identity.

Having an identity distinguishes you from the general service providers or generic products out in the market. You may be offering a similar product or service in the market but because you are distinct and known to your market, you may have the edge over your other competitors. Your business identity is something that could affect you both positively or negatively. Say for example in the food industry, you have the same menu with your competitors except that you have put a little creativity to your menu by naming popular celebrities or the like with the menu.

Another aspect that can establish your market identity is your quality of service. If you are known to deliver the service  as advertised, you could possibly attract more customers since you are true to your word and is not a sales-talking businessman. If you also had a distinct way of doing your service for example, singing while serving them, it can add a value in the service that customers might get attuned to and expect every time they transact with you.

There are a number of ways how you can attain a distinction in your business. A lot of business entities did not have that distinction before but in time, they realized that establishing an identity to the public gives more opportunities to their businesses. No known business organization would just operate being known as a regular player in the market, they would want supremacy, power and leverage that would be provided by having their own identity.

Having an identity can give supremacy since being identified, you are superior to your other competitors in a way that your brand or identity is well introduced to the market and is known to be the best in the field. On the other hand it could also give a connotation to your market that you are offering inferior quality products or services which could possibly result to loss of market share.

It gives you power because if you get to the point where your products or services are known to the public to offer superior quality, you might not need to advertise or introduce it anymore. Being known as the market leader in the field gives you power, thus every successful business nowadays don’t settle for running their daily operations efficiently but also would want to be known and famous in the field.

Most of all, after attaining supremacy and power through your identity, this could give you leverage once you have established your identity and are known to the public, you are also instilled to have such identity that they can depend on whenever the need for your arises. Having an identity increases the value of your business but at the same time, when failures or threats come to your business, that identity might get damaged or worse, be a history. Nonetheless, maintaining such identity would most likely bring good to your business. May you have your distinct business that would be loved by everyone.

 

Good luck on your business endeavor and thanks for reading.

Targeting your Market

marketingIt is essential for every business enterprise to have a target market in whatever product or service it would provide. Failure to identify your target market would result to poor business performance since you did not identify the behavior and characteristics of your target customers. There a few number of ways to possibly target your market, you can either target by gender, age, work and market class.

Whenever you target your market, most of the times you would also place your business along with your target market. If you are targeting students, you would probably place your business near a School or University but there are some entities that might not do the same because of the hazards that they deal say for example a pharmaceutical company, even though it is ideal to put up near hospitals, they may opt not do so because the production of medicines might be harmful for the general public thus, they are asked to produce the medicines on isolated places.

Some factors that you might also need to consider in targeting your market are the competitors, if you would only have a few competitors in the chosen field, it might be beneficial for you to put up your desired business, but if you would be having a lot of competitors in the chosen field, you might as well think twice before pursuing your business.

Observing the behavior of your target market could also help you in selling your products or services. Say for example you are targeting to sell school supplies to students and you notice that most of the students loose their pens, you could sell laced pens to them since it would lessen the chance of loosing it compare to ordinary pens.

Marketing is a very complex study but may be simplified. Most successful businessmen are good marketers because they have observed what their target market needs are. Marketing can be applied in a number of ways, the simple task of identifying a need of a society or group of people can be characterized as marketing. If you plan on establishing your business and you do are a poor financial planner but you feel that your idea would surely be a hit and pursued it, you are a good marketer because you are seeing things the other way around.