The tech boom doesn’t just apply to companies manufacturing smart technology – it’s also become a massive growth factor in the industry, as industrial businesses are constantly using technology to up their game and provide faster, more efficient client services.
If you’re interested in starting an industrial business, there are a few key things you will need to be aware of as you enter this competitive and vastly growing industry. In this article, we’ll discuss five things to consider before starting an industrial business, so you can enter your next business venture feeling confident and prepared.
1 – Start Up And Maintenance Costs
You first need to consider how much it will cost to start and then run your business. Many first-time entrepreneurs will draw up an initial financial strategy without considering all elements of the growth period.
It can be easy to prophesize the amount of profit you’ll make if things go well, but you need to factor in how long you’ll be able to sustain your business until you’ve built your reputation. This includes internal expenses such as industrial cleaning, machinery maintenance and worker wages that could take cuts out of initial profits.
The key thing to consider is ‘how long can I sustain my business without significant profits?’, as building a client base in a competitive market can be difficult as it involves convincing people to switch their loyalties to you. This can take time, so you must have the funding to sustain your business during the initial growth period.
2 – Your Main Competitors
It’s always important to consider your market research when starting a business. Often, it’s not about establishing what your competitors are doing wrong. But rather, it’s about figuring out what they’re doing right. Consider what your main competitor’s clients like and how you could offer them something better.
Your competitors’ weaknesses give you areas to impress clients with how you could fulfil these areas, but bettering them at their strengths can convince their clients to switch to your superior services.
Loyalty means a lot in the industrial market, so if you can show a company why they should pick you over a competitor, it will demonstrate to everyone in that area that you are offering something they can’t refuse. It’ll also get them all to look your way when picking someone to work with.
3 – Location, Location, Location
One way to get around the issue of big competitors is to choose your location strategically.
For example, if you’re setting up a factory that manufactures bricks, you may want to pick a developing area with new builds in the works – as your target audience will be the building companies who need bricks to build new homes. If your factory is closer than they usually buy from, it will be easier to gain their business as it will save them significant funds in delivery costs.
In other words, don’t jump the gun and pick a popular area just because it’s popular – it’s common for these areas to already have many established businesses that clients will go to over yours. Instead, look for areas beginning to develop and get in on the ground floor.
4 – Marketing Strategies
Marketing is key to selling any idea. How you market your business and your resources will make all the difference to how people perceive and use your services.
The key to creating a marketing strategy for industrial businesses is to try and look at it from the client’s perspective. Ask yourself:
- Where would you go if you were looking for these services? (e.g. an online dictionary, social media, TV advert flyers).
- What type of marketing would catch your eye?
- What would convince you to pick your new service over an existing service?
You can establish a marketing strategy by working with your creative team to target your key demographic of clients. It’s all about perspective and what the client wants to see, and it will convince them that your business is what they’ve been looking for.
5 – Be Prepared For The Worst (Have A Business Plan Ready)
Business successes will naturally fluctuate; recessions, dips in stocks, investors pulling out, and other things can affect your business development. You must enter your chosen industry with a plan in case this happens.
Ask yourself what you’ll do if, for example, your biggest investor pulls out at the last minute – do you have a fallback? Do you have another means of income?
A strategic business plan can help you to combat these things if they arise. Though it might seem a little pessimistic, you must consider what could go wrong to get things right.
Ready To Go Into Business?
If you’ve read through these five things to consider before starting an industrial business and think you’re ready, we wish you the best of luck with your new venture. Remember to be strategic, consider your strategy from all angles, and, most importantly, provide the best service possible to show your clients you mean business.
Also read about workforce software monday