Why Starting A Successful Business Keeps On Getting Harder

Summary

Starting a successful business is increasingly difficult due to market oversaturation, aggressive competition, and the dominance of established companies with significant influence and resources.

Abstract

The article discusses the challenges faced by new businesses in an era of oversaturation, where the sheer number of competitors makes it difficult for new ventures to gain a foothold. It highlights that even with innovative ideas, new businesses struggle to compete against established giants like Coca-Cola, which have aggressive advertising strategies and a strong grip on the market. The influence and funds of these conglomerates often prevent new businesses from achieving their potential, potentially stifling technological advancements and the introduction of new eras in business. Despite the streamlined process of starting a business and the plethora of choices available to consumers, the trust in longstanding companies often overshadows the credibility of new entrants, contributing to the difficulty of market entry.

Opinions

The author believes that the current business market, with its oversaturation and intense competition, is the biggest challenge for new businesses.
It is suggested that the dominance of large corporations, such as Coca-Cola, makes it nearly impossible for new businesses in the same industry to break even, let alone succeed.
The article expresses that aggressive advertising strategies by established companies ensure they remain at the forefront of consumers' minds, making it harder for new businesses to gain visibility.
There is a sense of tragedy in the potential loss of innovation and advancement due to the inability of new businesses to thrive in the current market conditions.
The author implies that the ease of starting a business has led to an oversupply of options for consumers, which paradoxically makes it more difficult for new businesses to earn trust and market share.
Despite the challenges, the author encourages the pursuit of new business ventures, drawing inspiration from the success stories of now-prominent companies that started small.

Why the odds are stacked against you

We’ve all been there I imagine. Looking at an existing business and declaring we could have done that — if only we had been the first to do so. We are sadly in the age of oversaturation and this is the biggest problem to face new businesses in current years.

Due to the sheer number of new businesses and pre-existing ones, competition is growing exponentially. This means that the battle for a customer is greater than it has ever been before. New businesses simply cannot compete and this is a tragedy.

With new business ventures come revolution — changes in how business is conducted and products consumed. With this growing issue, new businesses are failing to land their feet and as a result, we the masses, are missing out on a great deal.

This isn’t a new issue by any means. A soft drink company starting out 50 years ago would still have struggled to break into the market given Coca-Cola’s influence. But if you thought about releasing a new soft drink now, it is quite possibly even harder. Coca-Cola remains at the forefront of the market and with its grasp on other soft drink products, you would be lucky to break even.

This is primarily due to their aggressive advertising strategy. They rent out billboards in areas with the most traffic; they continue to advertise on mainstream television as well as streaming platforms such as YouTube.

The consumer cannot forget about Coca-Cola, because Coca-Cola won’t let them forget.

And herein lies why new businesses can’t break through. The huge conglomerates already have the influence and the funds necessary to prevent your business from reaching the heights that you have foreseen. New businesses are a threat to the old, and so they are dealt with as any threat would be — they are removed.

And here lies the tragedy. We could be unknowingly be preventing new eras and new technological advancements simply because of the business market we have created.

Creating a business has become so streamlined and mainstream that the customer now has too many choices, and is more likely to trust a longstanding company over a newly formed one.

This oversaturation shows no signs of slowing down. As a population, we are growing, and directly proportional to that is the new ideas being formed. With so many ideas, but so little space in the market, we are sure to miss out.

Still, small businesses continue to strive forward — fuelled by stories of the greats starting out small just like them. And I’m all for it.

Let’s usher in a new business era!

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