Any tips on building a successful business ( If it already exist)

[chrisbiz4444]

The fast-lane business I want to build already exist.

There are about 3 company's with operational sites doing this. It is a website / software that allows its members to get access to material. Most of the sites that do exist already are not very attractive. However they are functional which is important.

How to determine if a business plan is worth pursuing ?

The idea is clearly in demand if 3 company's are already in operation. However I just do not know if the market is already to saturated. I know many say don't worry if someone else is already doing it. What is the best way to determine if a business should be a no go ?

Any tips or advice would be greatly appreciated.

 

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[FastLaner007]

What is the best way to determine if a business should be a no go ?

Some initial testing through marketing?

 

[chrisbiz4444]

Some initial testing through marketing?

The market is already there. These company's are doing the same exact thing I was planning to build and more keep popping up. They are making $. However I don't know if the demand is already filled and I am wasting time with this.

 

[Gale4rc]

It depends on a lot of things....

Is this a B2B Business ? If it's B2B then you have the power to call up clients on your own and sign them onto your business and build your company that way.

B2C - Is there any niche they are not targeting that you can to gain customers? If they are already successful, they are probably dominating the PPC/SEM market place. Try to find somewhere they're not looking. This could be with SEO/PPC/ Anything you can think of. When you find somewhere that you think you can get consistent business from and really grow your company from THEN just build a simple landing page with an e-mail signup form to test it.

Use the landing page to validate that the traffic you're getting will convert. Make the same claims / better claims then your competitors are making and see if people sign up - If they do, then you now have a potential route to grow your business.

 

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[alexanderkjones]

@chrisbiz4444 PS love the lambo photo. I've obviously got to change my profile pic...

Seriously though, look you're trying to determine the market saturation right? there's a certain level of estimation that needs to be done here but let's look at the numbers.

1) How many potential clients are in this market?
2) How many sales could you close per month if you had the business already going?
3) How long has each of the other three competitors been around?

Let's assume there's 50,000 potential clients in the market and that you think you could close 50 in a month. Let's give your competitors a relative advantage and say they have a 3X better conversion rate than you do and they are currently closing 150 sales a month. Let's say on average each of your competitors has been around 10 months. So, your competition could be holding up to 4,500 clients almost 10% of the market. If that's the case you still have 90% of the market to play with and you have an opportunity to find niches within the niche. What makes your service better then the competition? Are you just looking to beat them on sales calls or with real value propositions?

If you've read some of my other posts you'll hear me say I'm all about mitigating risk. I think if you haven't doven into this market yet, dig deeper and find a unique value proposition that's not being offered. Or, take this technology to a different customer segment with less competition. Over all, if you enter into a crowding ecosystem of competitors the winner is going to be the one with the best marketing you can simply compete on customer service. But gauge your options and be realistic.

Here are some other important numbers to factor:

1) How expensive is the problem you're solving and how much can you charge to solve that problem?
2) What is your personal financial outcome for the business?

Start with your outcome, if you only need 1,000 clients to radically change your life GO FOR IT. There's great upside you just need 2% of this hypothetical market and you can leverage that cash-flow for your next venture. If it's something much higher, gauge your level of commitment and scrappiness before diving into a moshpit of competitors. There's always lower hanging fruit, but sometime you gata eat!

 

[chrisbiz4444]

@chrisbiz4444 PS love the lambo photo. I've obviously got to change my profile pic...

Seriously though, look you're trying to determine the market saturation right? there's a certain level of estimation that needs to be done here but let's look at the numbers.

1) How many potential clients are in this market?
2) How many sales could you close per month if you had the business already going?
3) How long has each of the other three competitors been around?

Let's assume there's 50,000 potential clients in the market and that you think you could close 50 in a month. Let's give your competitors a relative advantage and say they have a 3X better conversion rate than you do and they are currently closing 150 sales a month. Let's say on average each of your competitors has been around 10 months. So, your competition could be holding up to 4,500 clients almost 10% of the market. If that's the case you still have 90% of the market to play with and you have an opportunity to find niches within the niche. What makes your service better then the competition? Are you just looking to beat them on sales calls or with real value propositions?

If you've read some of my other posts you'll hear me say I'm all about mitigating risk. I think if you haven't doven into this market yet, dig deeper and find a unique value proposition that's not being offered. Or, take this technology to a different customer segment with less competition. Over all, if you enter into a crowding ecosystem of competitors the winner is going to be the one with the best marketing you can simply compete on customer service. But gauge your options and be realistic.

Here are some other important numbers to factor:

1) How expensive is the problem you're solving and how much can you charge to solve that problem?
2) What is your personal financial outcome for the business?

Start with your outcome, if you only need 1,000 clients to radically change your life GO FOR IT. There's great upside you just need 2% of this hypothetical market and you can leverage that cash-flow for your next venture. If it's something much higher, gauge your level of commitment and scrappiness before diving into a moshpit of competitors. There's always lower hanging fruit, but sometime you gata eat!

Hey thanks for the response.

1). I have been looking for the number of potential clients. I have used Google to search this with no luck at all.
2). I have no idea, some of these sites claim to service 5,000 people per year.
3). I do not know ( Or know how to find out. But I know one has been around at least 5 years.

The problem I am solving is a service that helps people pass their exam. Like a study AID. Most company's are charging between $39.99 and $59.99. So my plan was to undercut them at a lower price point and provide the same value.

You seem to have experience in SAAS style business's so I appreciate your response.

 

[Worldisyours]

prob. you should join the INSIDERS forum. s you can tell them the details freely

 

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[jon.a]

Hey thanks for the response.

1). I have been looking for the number of potential clients. I have used Google to search this with no luck at all.
2). I have no idea, some of these sites claim to service 5,000 people per year.
3). I do not know ( Or know how to find out. But I know one has been around at least 5 years.

The problem I am solving is a service that helps people pass their exam. Like a study AID. Most company's are charging between $39.99 and $59.99. So my plan was to undercut them at a lower price point and provide the same value.

You seem to have experience in SAAS style business's so I appreciate your response.

A race to the bottom? How about a higher price and more value?

 

[TJPB]

The idea is clearly in demand if 3 company's are already in operation.

Clearly

 

[SeanKelly]

So my plan was to undercut them at a lower price point

That's a really shitty way to do business

 

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[chrisbiz4444]

That's a really shitty way to do business

I agree.

I'm no longer working on this. This market is way to saturated. The demand is gone. Way to many businesses offering this already. I would be only chasing money, not creating value.