1. Don't think all the advantages
lie with the big guys. While it's true growing
businesses have trouble breaking into a market established by big
companies, they have plenty of breaks if they can get into a market
first. Customers like supporting the small company that created the
innovation, and they'll support that company as long as its
pricing and delivery are right.
2. Drive customers to
distributors. At one time, before he added distributors,
Sorensen had more than 5,000 customers. That's too many
customers for one small company to support. When customers call you
direct, find out if their distributor will furnish the product to
them. Tell customers that ordering will be easier if their
distributor will carry a product. Distributors will add a product
if they get enough requests for it. While distributors cut into
your profit margin, they make up for it by stocking and delivering
your product, and they can also help you rapidly expand your
market.
3. Don't waver on
supply. Customers will stay even if you're
small-unless they fear you won't be able to supply them.
That's when a big competitor has the chance to step in. If you
can't afford to support rapidly increasing sales, make a deal
with a manufacturer, seek a loan from a bank, or take on a partner
to be sure you can ship enough products to keep customers
happy.
Content Continues Below
4. Keep your visibility
high. Attend trade shows, trade association meetings and
industry conferences, and maintain a prominent advertising presence
in trade journals. Buyers are concerned that a small supplier may
run out of funds and go out of business, so it's important to
maintain your visibility. If you drop out of sight, some of your
customers might think this is a sign you're in financial
trouble.
5. Be vigilant about patent and
trademark violations. When you're sitting on a hot
new market, competitors will test to see how vigorously you'll
defend your intellectual property. They might try to test-market a
similar idea, or they might try to market another product with a
name similar to yours. A quick response from your patent attorney
is enough to stop many companies. Your best chance at minimizing
your legal fees is to stop these companies before they get
started.
| | PATENT MATTERS | |
| A patent
is a useful tool for inventors, but as you start to develop your
businesses, you need to look at the role of patents in your overall
strategy for growing the business and increasing profitability. An
intriguing new book, Essentials of Patents (John Wiley &
Sons) by Andy Gibbs and Bob DeMatteis, takes on patents from this
perspective, detailing how a business can benefit from creating a
"patent consciousness" among its management and
employees. The book includes information on some of the new patent
changes in 2003 as well as a comprehensive look at how companies
should manage their patents. |
Don Debelak is the author of Entrepreneur Magazine's
Start-Up Guide #1813, Bringing Your Product to Market. Write to
him at dondebelak34@msn.com.
Page
1 | 2