The BizFilings blog covering business tips and trends.
Startup Basics: Setup Shop Next to Your Biggest Competitor
Published on Mar 10, 2011
Read 'Startup Basics: Setup Shop Next to Your Biggest Competitor' at 'Time to Start Up,' the small business blog by BizFilings.
Most experienced professionals agree: Forming a company is an exciting and inspirational endeavor. And now, as the economy begins to make its most significant improvements in recent memory - with February unemployment figures reaching the lowest point in nearly two years - entrepreneurial activity is set to take off.
What's interesting is that this sector never really crashed as a result of the recession. In fact, it blossomed, reaching its highest level since the mid-1990s, as many unemployed Americans began to see entrepreneurship as a viable means of returning to work.
However, the resurgence of business filings is not without a caveat, as an abundance of new ventures usually results in an over-abundance of competition. With that in mind, new entrepreneurs may want to consider the location of their enterprise. This is especially true for retail startups.
How many times have you heard the most important part of setting up a business is location, location, location? Would it surprise you to learn that one of the best places to setup shop may be in your top competitor's backyard?
"Quite simply, the best place to be is as close to your biggest competitor as you can be," Greg Kahn - founder and CEO of Kahn Research Group in Huntersville, North Carolina - told Entrepreneur magazine. "By being in close proximity to your competitors, you can benefit from their marketing efforts."
Of course, piggybacking off others' marketing initiatives will mean nothing if you don't have a superior product, so make sure that customer service is top-notch and your products unparalleled. Know and communicate the fact that your company is in its own realm.