When we hear the terms entrepreneur (business) and online (or Internet) together quickly comes to mind the image of Facebook, Twitter, eBay, Google, Flickr and many other large companies like that. Resounding successes have been due in large part to the innovative (and sometimes revolutionary) idea behind them, but if we look at the reality, most Internet businesses are not successful because it is based on an incredible idea but to be well executed. From individuals to large multinational breadwinners, and very well indeed, but not for being revolutionary for doing his job better than the competition. I could give hundreds of examples, and I fall short, but I think one will suffice: Zappos.
Zappos
Zappos was sold to Amazon in 2009 for an estimated 1,200 million. You know what this company is dedicated? To sell shoes. Exactly, something as basic as selling shoes. But what did the seller Zappos online shoe number 1? Something so called customer service. Zappos's strategy to grow and differentiate themselves from competitors was having the best customer service in the market: free home delivery, 365 days to return any purchase, shipment reaches in no more than five days, although the vast majority of orders arrive the day after having made the purchase order; their stores are in operation 24 hours a day, 7 days a week, call switchboard open 24 hours every day of the week, with an exquisite attention to customer, having it online as long as necessary to meet their demands properly. Through these practices, Zappos spent over a period of nine years, from 0 to 1,000 million dollars in sales. Nothing wrong right?
Here you have an interesting article (in English) in which Tony Hsieh explains why the sale of Zappos: Why I Sold Zappos .
What matters is not the idea but its execution
Therefore, the key to success of a startup online (and offline) is looking to eat the coconut revolutionary ideas that change the world forever but, quite the contrary, in executing best ideas that already exist. Creativity must be present, but not the central idea underlying the business, in business, this is the way they relate to providers and consumers in the organization of the media themselves, in the distribution of products, marketing campaigns, and much more. This is how we will make our company apart from the competition and thereby expand our market share and enjoy the profits.
The competition against popular belief is not bad
The perfect excuse to any business idea usually is: "there is too much competition." Or in other words: "companies are already set and you must be loyal to their customers. We will not have a chance to enter that market. "
When I hear someone say to me I get a laugh (quietly). Competition all that means to me is two things: (1) that there is money in that market (otherwise they would all be broken), and (2), easier to create my company because I have the reference of how competition is working, its practices, its business model, its dealing with customers, and much more.
Regarding the first point is clear, at greater competition and greater market opportunities that our business is viable. Let them go forgetting the big companies of perpetual loyalty of its customers. As a company itself known (via promotion), if your product is good and their customer service exceeds that of the competition, no loyalty is worth, because the customer is not stupid, go where your needs. I could say that the customer does not always know what is best, then I'll answer that for you that you and your marketing team: to show the customer that your company is better than the competition.
Conclusion
Good business ideas are a plus for any company that wants to succeed but are much less requirement for this. With an acceptable idea executed better than the competition you are more likely to be successful than a great idea poorly executed.
The search for revolutionary ideas should never be a priority for the entrepreneur because, in most cases, leads to a state of frustration with the lack of results. Revolutionary ideas also have the disadvantage of requiring a significant capital investment, so surely they need to go to external finance (financial institutions, angel investors, etc..). Then you have to convince them that your business idea is truly revolutionary (and not just in your mind) and that can be done for a reasonable sum. The problem of revolutionary ideas is you have to convince others of his quality. Since this is a revolutionary idea investors have no reference with which to compare your business idea so distrust their potential. These are some of the obstacles they must face every entrepreneur with a business idea supposedly revolutionary. Both the difficulty of finding such ideas as the many obstacles to carrying out his execution advised to concentrate our efforts on more realistic entrepreneurial initiatives.
Innovation and creativity, rather than the business idea has to be in its execution. Differentiate yourself from the competition and how to take your business to your business success is assured.
What do you think?
Got some experience to share in the search for revolutionary ideas? Or do you, like me, you opted to focus your efforts on the implementation of the ideas? Leave your comment below or let me come via Twitter .
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