How to create a star business that will make you rich - 7 steps
Seven step to carve out your niche in the market place
Have you really wondered why some businesses succeed and others merely take off only to stagnate or fold up within few years. What is the secret of creating a star business that grows around 10% or more annually in terms of return on investment?
These are some of the ideas shared by Richard Koch in his booK: "The Star Principle - how it can make you rich.
He described a star business as a leader in its market niche and growing at least 10% a year.
What is the basis for creating brands that ultimately become leaders in their niche? If brand creation is in the domain of categorical thinking followed by strategic and execution thinking to making these ideas happen. Where do these categories that make up these brands that ultimately become star business come from. What is the background knowledge or mo5ivation to establishing these star companies like googel, coca-cola, Amazon e-bay, MacDonald to mention but few.
Experience has structure and most of these star business must have a recipe that constantly delivers the same end products that met the value expected by their various consumers. They also continue to create and nurture products and services geared to meet their client satisfaction. They leave no stone unturned as that innovate new line of products or services to meet the desires, needs and aspirations of their customers in the present as well as the future.
According to Richared koch the secret of success is to know something nobody else knows. I bet to add that knowledge is not enough; a massive action on the information is required for a successful outcome.
Here are the suggestions to creating a star business.
1. Divide the market
Take an existing market and divide it into two. The baby will be tiny relative to the main market. The outcome will be two markets - the general or everyone's market and your own new carved out niche
2. Select a high growth niche
Estimate the future market growth in the possible niche. Pose this question. Will it grow 10% a year? If not reject and go back to the first step so as to select another niche that will indicate future growth.
3. Target your customers
Here you identify the target customer 's preference. They must be clearly identifiable and differnet in profile from the customers in the main market.
4. Define the benefits of the new niche
What's the benefits of the new category over and above the existing products in the market? What is it offering more? What is it offering better for the target customers? What is is offering that the main market doesn't provide at all? And also, what does the new niches the new products not do that the existing products do? What is it subtracting from the main market?
5. Ensure profitable variation
Why is the new niche more profitable than the existing market? If you cannot provide the the answer to this question or fill in this gap; we reject the idea and stsrt again in step 1.
6. Name the niche
Plan to be a leader in this niche. You need clarity in this regard. Unless you define your niche carefully, you cannot have a clear idea of who your niche competitors - the focus should be on these not on the firms in the main market that compete indirectly with you. I think the statement from the Founder of face book is apt here;
" We are building value in the world and not just taking value from other companies."
Mark Zuckerberg - Founder of Facebook
Make it difficult to understand the key difference behind youe profit and growth. Do not reveal tham or boast about them until you have sold the company.
7. Name the brand in a new way that complements the category
Make sure the name is short, memorable, easy to recognise, appealing to the target market and associated with the niche.
These a thematically, the ideas of how to create a star business. Follow them and create the star business you've been dreaming about and succeed
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