Quicksand Quotient II
I participated in an ill-conceived start-up that had little chance to succeed. We were up against competition that was too dominant.
Hindsight is always 20/20! When considering development of a new business, be aware of the strength of the major player in the market. Regardless of the industry, if the market leader has more than 25 or 30 percent of the market, take a long, cautious look before proceeding. Competitors who already own large shares of the market dramatically reduce survival rates of newcomers.
Odds are you will either run out of money trying to out-spend the big-hitter, or tire of the battle and back away. Even under optimum conditions, success will be an uphill fight.
To avoid quicksand when starting a business, determine:
- Whether you're looking for a job or seeking to create wealth by building an organization that functions successfully without you.
- Know the other players in the market. If one or more competitor is too dominant, watch out.