Did you know that there are currently 340,000 small and medium businesses operating in Hong Kong? Many are returning to the idea of running a small business themselves so they have more control of their hours, work-life balance, the products they produce, and business culture. As rewarding as having your own enterprise can be, you need a solid business strategy to succeed.
Do you want to know what some of the most successful business strategies of all time are? Keep reading this handy guide for a business strategy breakdown, tips for choosing a business strategy, and three great examples.
You As a Business Owner
Personal passion is going to improve your business’s chances of success, so start by asking what you’re passionate about doing. Doing something you find meaningful or interesting will help you stay disciplined and ultimately drive you to try to make more money. However, that may also require some additional skills.
If you don’t have the accounting know-how to balance budgets and do taxes, you can start by taking a course for this skill. If your enterprise stands to make a substantial profit, you should also understand your revenue’s profit tax rate for legal purposes.
Lastly, consider acquiring additional skills for your business venture (like drop shipping, crypto analysis, welding, etc.) by investing in yourself through education.
The next step is looking at the market and finding out what consumers already want. If you’re offering something there’s already a need for, then your marketing can focus on advertising your product’s existence without needing to generate interest or hype.
For instance, many legacy investors may need someone to help them learn the technology so they can break into cryptocurrencies as well, and offering a teaching and analytics service may be very lucrative.
Differentiation is the strategy of coming up with a product that has a crucial benefit not offered by other products of its type. These goods and services can be easy to conceptualize but difficult to pull off. You need to be able to offer this benefit consistently to your entire client base.
An example is how CATL’s EV battery is said to give the most range, beating out Nissan and Tesla’s current technology.
2. Price Skimming
Price skimming is where you charge a high price for your product in the beginning. This makes it feel exclusive to consumers, covers all your expenses, and balancing books and budgets for this strategy is easy.
However, your marketing strategy needs to be impeccable because people may not be interested in a new, expensive product.
3. Price Penetrating
Price penetrating is the opposite of a skimming business plan whereby you charge meager prices for your initial product. This penetrates the market and creates the desire. You can then slowly improve your product and widen your margins.
The downside to this is many businesses have to make debt in the beginning for this to work long-term. Because of this, it’s best to have a great accounting strategy or a great accountant.
Learn More About Business Strategies
Learning about which business strategies made other companies successful is itself a significant part of your successful strategy. See how other successful businesses make their marketing, financing, accounting, and product design work together.
Find out how they started and how their business growth strategies changed over the years so that you can see where best to take your company to find success.
Are you interested in learning how to finance your next business strategy? Check out our finance blog and see what financing options are available to fund your growth.