Introduction
Business barriers to entry are specific circumstances that make it difficult for a business to enter the market. These barriers are always problematic to the business startups and may lead to business failures even before the business activities begin. Successful business startups usually have well-defined action plans to overcome the barriers to market entry. The main business barriers to entry are capital availability, the existence of business competitors, ready market, legal requirements, intellectual barriers, economic, and market conditions. Each and every business barrier should be treated with great care. Action plans should be set and followed to overcome the barriers (Crane, 2009).
Action Plan
A good action plan should be able to handle all the issues concerning the available business barriers. It should contain strong and supportive strategies that will ensure the business survival and success. The availability of capital is very crucial to any business startup. Many entrepreneurs and business organization acquire capital through their personal savings, loans or borrowing from other financial sources. This usually occurs at the early stage of the business startup. The money or capital propels the business into performing its first transactions. The business capital is only needed when the business is starting its race towards the market world. It is usually coordinated by the owners or managers of the business (Barreto, 2007).
Every successful business establishes a ready market for its goods and services. A good action plan should include well-defined strategies that aim at creating a larger percentage of customers. This involves the employment of good customer relations. Customer loyalty is very important in every business. An enterprise that lacks good customer relations should change its strategies. It should also create awareness about its existence through both formal and informal advertisement channels. The creation and maintenance of ready market is usually a continuous process throughout the business life cycle. It leads to business growth and expansion. This type of action plan should include communication between the business owners and the customers because it seeks to create a substantial relationship between the two parties (1000ventures.com, 2009).
A good action plan should consider the availability and impact of the business competitors. It should make a business to have a competitive advantage over its competitors. A business should research the best methods to use to survive in the market. Innovators are very important . They assist in coming up with ideas that can make the business perform better in the competitive market structures. Action plans provide solutions to the business problems. Some business organizations fail to meet the minimum legal requirements, leading to failure. Elimination of the problems associated with legal issues is very easy. All that is needed is to follow what the laws entail. The legal requirements mostly affect the business and its owners. It is therefore very important for the business owners and managers to know the legal requirements that involve their businesses (Crane, 2009).
Intellectual barriers possess great impact on the survival of the business. Entrepreneurs and business managers ought to be more knowledgeable about the issues and factors that revolve around their businesses. They should take advantage of the customers’ both positive and negative feedback. The positive feedback can be used to expand and create more business opportunities. The negative feedback can be used to correct the business activities and come up with better strategies. Business owners are supposed to come up with ideas that motivate the employees so that their overall production can improve and reflect the success of the business (Chambers, 2008). Every business needs an action plan to be successful. The various strategies must be applicable and cost-effective.
References
1000ventures.com,. (2009). BARIERS TO ENTRY, Creating Barriers To Entry, How To Overcome Barriers To Entry, Source of Sustainable Competitive Advantage. Retrieved 6 June 2015, from http://www.1000ventures.com/business_guide/crosscuttings/competing_barriers_to_entry.html
Barreto, H. (2007). The Engine of America: The Secrets to Small Business Success from Entrepreneurs who Have Made It!. John Wiley & Sons.
Chambers, K. D. (2008). The entrepreneur’s guide to writing business plans and proposals. Greenwood Publishing Group.
Crane, F. G. (2009). Marketing for entrepreneurs: concepts and applications for new ventures. Sage Publications.
Innovative Writers 