Picking the right niche is important when you are starting a business.
Maybe you should consider the entertainment niche and particularly hospitality, which is a major industry niche around the globe.
In fact, in the private sector, the hospitality niche ranks as the biggest global employer providing a variety of opportunities in various fields including travel, hotels, leisure, cafes, cruising and restaurants. That is why it is a great sector for starting a business.
Here are 7 critical success factors for starting a business in any niche.
Critical Success Factors for Starting a Business
1. The Right Location
Location has always been important and it is no more important than in the entertainment industry. You need passing traffic, ease of access and a safe environment. Competition is good but too much competition makes it difficult, particularly when it is hard to differentiate.
2. A Practical Business Plan That is Simple and Clear
Your business plan helps you operate the business. It is also a vital tool to convince banks and other investors to financially support you. It needs to be realistic so you can achieve the results, simple so it is easy to follow and clear so you know exactly what needs to be done to put the plan into action.
3. A Well Reasoned Marketing Strategy
You need a point of differentiation for your business. Why should potential customers choose you above all the other options available to them? Who is your target market and what marketing initiatives are they likely to respond to. Options include PR, internet advertising, off-line advertising, networking, sponsorships together with other marketing campaigns to get your brand name known to attract customers. You want long-term success and that is why a good marketing planning is so important in achieving that.
4. Make Sure You Are Not Under-Capitalized
Starting any new business can be capital intensive. In hospitality it can be even more so. You will require a significant amount of capital whether your start a completely new business or take over an existing one. So planning to ensure you have enough start-up capital and working capital is important. That is also where a good business plan comes into play to help you attract investors or commercial funding.
5. Customer Service that is Nothing Short of Exceptional
Make sure your team members are well trained, polite, and flexible in fixing issues that emerge with customers. Customers remember exceptional service and it keeps them coming back. Poor service is also remembered and even one experience of poor customer service stops people coming back. People who experience poor customer service also tend to spread the message a lot more than those who are happy, so it is an ongoing key task to ensure customers are delighted with your service.
6. Pricing and Positioning
Positioning is all about how you want the customer to perceive you. Do you want to be value for money? The cheapest? The most expensive? The most entertaining? Once you have determined that, you then set your pricing in accordance with your positioning.
7. Look After Your Staff Well
Your people are the most important ingredient of your business. We have talked about customer expectations and the need for exceptional customer service. It is important that your staff like working for you and can tolerate and excel in those tough occasions that inevitably come with customers today. This is much easier when they know you appreciate them and their work.
So consider these seven success factors as you commence a business.