Easy business has high competition level
It's always a nice thing when you know the business you are about to venture into has an easy startup capital and also is easy enough to conduct its day to day activity. Inasmuch as no business is actually easy, all I am trying to point out here is that some can have minimal stress than others and even better if the income is lucrative. Yet don't be too excited about such an opportunity, it has a pending risk that affects its lifespans.
I was returning from my office yesterday to meet two individuals along the way who were struggling for the right to be the only person conducting a particular business. To be sincere, it was very embarrassing. The customer standing and being blocked by one of them so that he would not conduct the business. The guy blocking felt he was the one that first introduced the business and was not ready to take the competition at such close range. I never knew how it ended actually, you know I mind my business a lot, yet as I was walking past, questions started rising within me.
Who was right and who was wrong? You know both were rendering business under one tenancy with different businesses until the other decided to venture into the same business. Should such case be solved by their landlord. You know, when each rented the apartments, they all stated their nature of business. Looking from another angle, why should one be limited if he wanted to expand his business, he is still paying rent and we all know the standard of living is getting very high and everyone wants to survive in business. Or could it actually be envy, one just trying to frustrate the business for the other. From any angle you may view it, you may be right but not absolutely. Finally I decided to step out from the questioning shoes to factor out something that made the competition persistent.
Easy startup can raise competition
The fact is just that the business was very easy to start up and also had a low stress running it. You know, when you have to pass through several procedures before a successful business establishment, competition is likely to be low. One of the businesses you can't see people competing in is the pharmaceutical sector. Getting the needed papers can be so frustrating, you need money to get so many papers all through the way. Another has been in the petroleum sector, before you plan to compete, just think of how much you will have to invest to get it started.
In short, you will want to resume in an area with low competition knowing you can go out of business and run a huge loss. In that scenario, the reverse was the case, the business was more of a 'hop in and profit' type of business which its lifespan is always limited. When the market becomes too bulky with suppliers there is likely to be a decline in service rendering. One way or the other, I have come to see the need to venture into businesses that have some standards especially for the sake of long run sustenance. I have seen a particular business that is in high demand yet very few venture into it due to its high cost of running and also a high level of risk if there is no proper expertise.
Yes risk can help secure business
Just as earlier said, aside from it being easy to set up, risk can also help to mitigate the rate of competition in every business giving the market its needed shape. No one wants to put money where there is a higher chance of losing it all. One sector I have seen this play out is the livestock farming. Poultry farming especially is one lucrative business everyone would love to get a good portion of. Everything in the poultry can be converted to cash including the chicken feces, yet don't be fooled because on rough ground you could go home with nothing at the end of the day. The rate at which infection and disease can spread across the poultry can make the business very frustrating. Poultry business is a huge investment from day one. You know what it means when you lose funds right in the middle of the process.
Expertise helps shape the market too
Still using the poultry business as an example, you can't just jump casually into the breeding of chickens. When you have little to no knowledge on how to tackle disease that may easily spread, get ready, you'll be seeing your finances drop dead in your very eyes. No one will be competing with you, it's just you, looking for possible ways to scale through. One event can teach you a lot. I have really learned from yesterday's scenario and I hope to be more business minded and selective as I continue to advance. I guess if that business needed high expertise before an involvement it would have settled itself before the public display. It even becomes more discouraging when you have to pay more than one professional to look after the business, trust me, you won't want to jump in anyhow.
To conclude let me add, I just came to realize the advantage of high cost, risk and expertise to a business. Adding also to it is the high hectic level it carries. No wonder some business opportunities still pend and the market demand remains high with low supply to balance it up. Many know about the opportunity but few are ready to risk too much for it. When a business is too cheap to establish the chances of standing the test of time is very low. Anything is possible, just as it played out, competitors at a very close range may come up to struggle with the same customer base with you. I guess there is always a need to have sone standards when running a business, it could be enough to sustain you and warn off unnecessary competition.
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