Did you know that almost 534,000 new businesses open every month in the US?
That’s 6,408,000 a year.
In other words, no matter what industry you’re a part of, you’ve got some stiff competition. It’s up to you to find and foster your competitive advantage. How can you get ahead—and stay ahead?
We spotlight some expert tactics below. Don’t waste any more time!
- Get a Grip on Cash Flow
Of the hundreds of thousands of new businesses that open every year, 82% of them fail because of cash flow problems.
Common issues with cash flow include:
- Underestimating start-up costs
- Neglecting to make a budget
- Having a high overhead
- Expanding before you’re ready
- Forgetting to analyze your profit margin
Let’s assume, based on the numbers, that eight out of ten of your competitors are struggling with one of the above problems.
Be the 20% that doesn’t have these issues and give yourself the competitive advantage—of keeping your doors open. Use your cash flow budget to make wise purchasing decisions, keep your overhead low, and cut unnecessary expenses.
- Manage Your Supply Chain
Here’s another fun fact for entrepreneurs: 57% of businesses worldwide consider their supply chain as a competitive advantage.
So, when you’re looking for actionable business strategies, considering supply chain optimization. Doing so can help you streamline your entire process, staff appropriately, and improve relationships with your suppliers. It can also better guarantee that your inventory will stay predictable and reliable.
- Invest in Continuing Education
Nothing says you’re an expert in your field like having the knowledge to back it up.
When you invest in your business by investing in yourself, you’re building the foundation as your niche’s authority. The more networking events you attend, classes you take, and certifications you receive, all lend themselves to your dominance in the market.
Let people know that when they buy from you, they’re buying from someone who’s spent their own time and money trying to improve and optimize their practices. You’ll look more dedicated, involved, and trust-worthy.
- Don’t Be Afraid to Charge
Only 40% of small businesses are profitable—will yours be one of them?
If you charge too little, you could be selling yourself short. Charging more money has a name: prestige pricing. That’s when a company sticks a higher price tag on their products or services, making them stand out from the cheaper options (which often read as lower quality).
Of course, make sure your offerings deserve an admirable reputation.
Harness Your Competitive Advantage in Business
If you’re not sure what that is yet, the above tips will help you get a leg up on the competition.
2021 is all about being valuable and essential. When you provide a product or service, make it the best it can be. Let your competitive advantage be your dedication, your know-how, your money habits, and more—because there’s no limit on greatness.
For more business advice like this, keep coming back often. Tell your friends!
Danny White is a freelance writer who offers to ghostwrite, copywriting, and blogging services. He works closely with B2C and B2B businesses providing digital marketing content that gains social media attention and increases their search engine visibility.