Business to Business Factors that Makes the Industry Unattractive to Startups

Creating a business can be a very fun adventure to embark on, but it should be clear that this adventure comes with both great success, achievements, and failures. While you can be a failure by not giving your customers what they need, and not satisfying their interest, it should be clear that other businesses can pose as threat and cause your business failure, making the industry which you are become unattractive.

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Rivalry
When you start a business, identifying the numbers of rivals in your industry is important. Your industry should be less competitive for your business to be able to succeed, but when it is highly competitive than the business success is very slim. Saturated markets are very tough place for businesses to thrive, especially when there are strong rivals.

Available Substitute
If you are going to start producing any product or rendering any services, be very sure of the substitute to your business or product. If you are going to be creating a local radio station, you should bear in mind that people now have substitutes such as internet radio. Your substitute always fall in your industry, and only in very few cases will it fall outside your industry.

Barrier of Entry
There are a lot of stumbling blocks to start a business in any industry. These barriers are challenges required by the startup to meet the standards of other businesses in the industry already.

Supplier Power
You cannot come into a market with less than your competitors, it is a failure even before starting. As a supplier, you need to meet the power of other businesses in the industry. Flocking a market with a strong, competitive product will surely shake your competitors, especially when your product and marketing are going in the right way. You need to have enough supply to shake your competitors.

You need to be able to put the above highlighted factors into consideration when starting a new business in an industry which you are not familiar with.