Enter de business race and keep running

The marathon season in the United States begins on October 9 2011 in Chicago where more than 80,000 runners are expected to attend. According to recent studies the runners will face all sorts of risks out of which hyponatremia, or water intoxication seems to be the number one concern nowadays. However, almost a decade ago associating hyponatremia with long distance running was inconceivable. Runners were often told to drink as much water as they could regardless of the pace they ran. It is well known that sweating and running goes hand in hand. Slower runners sweat less and if they ingest more fluids than they can excrete they run the risk of cellular bloating. If this reaches the brain it can be fatal. Thus, today, the International Marathon Medical Directors Association recommends runners to ingest fluids only when they are thirsty.

Business start-up and the environment’s thirst for new ventures

Young entrepreneurs must pay attention to two basic elements when launching a new business venture: the market’s viability and the price to practice when entering the market.

The market’s viability

The analysis of the real and potential competition is indispensable to test the commercial space for the new product or service. The problem that must be avoided is the one designed as capital myopia: one given investment idea can be interesting but it becomes impracticable if there are many promoters with the same idea. Maybe it is possible to start a new social network like Facebook but if 15 promoters have the same idea simultaneously many of them become not viable. Paying attention to what your direct competitors do is vital for a start-up success.

The practiced price

The second problem faced by all entrepreneurs when starting a new venture refers to the price charged. When launching a new product or service the price has to be lower than that already practiced in similar products or services, so that your new venture is able to conquer market share. Setting the price guided by the belief that” if I like the product or service offered, than the customer will like it too regardless the price” is not only cocky but it can be fatal especially when demand is elastic.

Analyzing the market to determine the industry structure, the market size and growth pattern, the barriers to entry and the opportunity costs can tell you whether the economic environment is thirsty for more business ventures or your idea is simply that last drop that fills the glass.

I. Kirzner said “entrepreneurial opportunities exist because people have different information”. What is important is the way you use available information to keep your business running at a steady pace throughout the entire business marathon.