Doing business in any state is hard but doing business in Arizona, with its bounds of competition, is even harder. With a population of over 7 million people, many different cultures and customs, and a plethora of opportunities to do business, it’s no wonder why this state is popular with startup businesses.
What does it take to succeed in these ambitious endeavors?
Hard work is only one piece of the puzzle. With so many risks at hand, you’ll need to use every resource possible – including potential contacts – to ensure that you keep your head above water long enough for success.
The Market: Knowing Your Customers and Competition
Knowing your customers and competitors will give you an advantage. Often, it can be the deciding factor between winning and losing. Failing to know these things can land you in a race for the bottom, where your competition is charging less than 10% of their true value.
If you’re not aware of your competition’s strengths, weaknesses and pricing model, you might end up over spending and investing in the wrong areas – ending up with an unprofitable or mediocre business. By investing in competitor analysis, businesses can learn about their competitors’ strengths and weaknesses, but also how they engage with customers in the same niche.
By investing in customer analysis, businesses can have an advantage on their competition by identifying customer needs and wants, which can lead to increased customer loyalty.
With this information, you can tailor your marketing campaigns to speak directly to the customer and provide a solution that they’re seeking. For example, you may find that your customers are having trouble finding a specific product in their local area. By pinpointing where your target audience lives (and what their buying power is), you can provide a solution for the need to purchase that specific product or service.
Networking: Introductions are Lifesavers
Networking is a popular buzzword in today’s business world. It can be used to introduce yourself to new contacts, find new clients and engage with more customers.
By building a strong network of strategic connections, businesses can not only help you find and engage with quality customers, but also develop your brand image and establish stronger customer relationships.
Arizona is full of options when it comes to networking. Whether they’re formal or informal, you’ll have plenty of opportunities to meet other professionals who can help you grow your business. No matter what type of businesses you own or work for, networking opportunities will always be in abundance.
Infrastructure: Having the Right Resources in Place
The most successful businesses have the right infrastructure in place for their needs. It’s important to invest in the right type of infrastructure to ensure that your company has the resources required to succeed.
You will need to invest in your employees to ensure that once you have created the perfect team they do not leave – either for better pay or a more rewarding or challenging role. If you have a lot of employees, it is important to have a decent training and onboarding system to reduce turnover and improve morale. This can help with productivity and customer satisfaction.
If you’re not well-connected in your industry, you could be missing out on the most profitable clients and opportunities, so you need to ensure a solid network of contacts for your business to thrive.
If you don’t have enough money to keep up with your competitors and help fuel innovation, you’re at a distinct disadvantage, so you will need to ensure you have a steady income, whether that is through funding in the beginning or secure turnover as you progress.
Financing: Securing The Funding You Need
Some businesses are born at the bottom of the ladder and end up going big. For others, it’s the other way around.
The amount of money you get will depend on the type of business you want to start, as well as your business model (supply chain and delivery mechanism).
Some organizations may only need a small amount – simply to ensure that they will be stable for the first few years or to take advantage in a sudden opportunity.
Marketing: Promoting Your Business Effectively
While entrepreneurship can be a profitable path to take, it’s not an easy option to take no matter your background or personality.
It is unreasonable to be an expert in all aspects of your business and marketing is one area which should be left to the experts. You should do thorough customer analysis as mentioned above, but marketing needs to be constantly altered and worked on to reflect changing ideas, a sudden rise of popularity or criticism in the online world and any reflection on a business’s reputation needs to be dealt with immediately.
This should be a full time job for a person or team of people depending on the size of your business and cannot just be allocated to an individual already in the team (unless there is a replacement brought in for their current job).
