23A – Your Venture’s Unfair Advantage

23A – Your Venture’s Unfair Advantage

1.     Network of potential employees

a.     Value: Extremely valuable because I won’t have to spend much time recruiting

b.     Rarity: Not rare because there are many licensed cosmetologist, estheticians, make-up artist, massage therapists, barbers and braiders.

c.     Inimitability: Not inimitable because my network of qualified and verified specialists differs from someone else’s network of qualified and verified specialists.

d.     Non-substitutability: It is substitutable because you can go to various locations to be provided the services offered.

2.     Financial Capital       

a.     Value: Very valuable because I would not have to borrow money to begin this venture.

b.     Rarity: Not rare because many salon owners are able to finance their own shops without financial assistance.

c.     Inimitability: Inimitable because other salon owners have built their shops up from their current income without borrowing from banks and investors.

d.     Non-substitutability: It is substitutable because you can take out a loan to open a salon.

3.     Knowledge of Target Market

a.     Value: Very valuable because you need to be able to accurately assess the needs of your target market.

b.     Rarity: Not rare because there are specialists who know more about my target market than I do.

c.     Inimitability: Not inimitable because the knowledge gained from experience with the market must be shared amongst others. Many do not share their knowledge just so they can have a competitive advantage.

d.     Non-substitutability: Knowledge of the target market is not substitutable. You must know the needs of your target market in order to have a successful salon.

4.     Adaptability/Flexibility

a.     Value: Adaptability and flexibility as a salon owner is very valuable.

b.     Rarity: It is rare because many owners have then mentality of “if it isn’t broke, don’t fix it.”

c.     Inimitability: It is inimitable depending on the scale and cost of the adaptation on how flexible the salon owner needs to be.

d.     Non-substitutability: Adaptability and flexibility to me are non-substitutable. You have to possess these qualities to be able to adjust your business to the current market conditions.

5.     Prospective Locations for Business

a.     Value: Location is very valuable. The ability to place your business in a location it will grow and prosper is extremely important.

b.     Rarity: Good locations for salons are rare. You have to strategically place the business in an area that will attract the largest number of customers from your target market.

c.     Inimitability: Location is not inimitable. You cannot copy the exact location of a business. You can be near the business; however, you cannot duplicate the exact location.

d.     Non-substitutability: Location is non-substitutable. You must carefully conduct location surveys and review traffic patterns of your target market to determine the proper location for your business.

6.     Ability to Effectively Lead/Manage a Large Group of Individuals

a.     Value: The ability to effectively lead and manage a large group of individuals is important for any franchise. You must have the know-how to get employees to exert the maximum effort in a productive manner at all times.

b.     Rarity: It is rare to find leaders who can manage and lead a large group of individuals. In my current career, I oversee over 600 employees daily.

c.     Inimitability: The ability to effectively lead and manage a large group of individuals is inimitable. It takes the knowledge, experience and the ability to effectively communicate to properly lead large groups of employees effectively.

d.     Non-substitutability: Effective leaders are non-substitutable in franchise. You have to have someone who can make sound decisions, be calm under pressure, and effectively communicate the mission, vision and culture of the organization.

7.     Willingness to Learn and Grow the Business

a.     Value: The willingness to continually learn and grow your business as an entrepreneur is very valuable to your business’ success.

b.     Rarity: It is not rare for entrepreneurs to seek opportunities to learn more about their target market in order to grow their business.

c.     Inimitability: It is not inimitable. Entrepreneurs attend the same professional/business development seminars and conferences. The inimitable characteristic of their willingness to learn and grow their business is how they apply their newfound knowledge.

d.     Non-substitutability: The willingness to learn and grow a business is not substitutable. As a business owner, you must constantly set and reach goals and milestones you have set for your business.

8.     Network of Business Owners and Potential Investors

a.     Value: An individual’s network of business owners and potential investors is very valuable.

b.     Rarity: Each person’s network and relationships are rare.

c.     Inimitability: A business owner’s network of business owners and potential investors is inimitable. You cannot duplicate relationships established with an individual.

d.     Non-substitutability: Networks are non-substitutable. It takes time, energy, and oftentimes money to establish the network an individual may have.

9.     Experience in/Knowledge of Public Relations and Marketing

a.     Value: Experience in and knowledge of public relations and marketing is valuable.

b.     Rarity: It is not rare for an individual to have experience or knowledge in public relations and marketing.

c.     Inimitability: This resource is not inimitable. Various individuals have a plethora of knowledge and experience in these areas.

d.     Non-substitutability: This resource is substitutable. You don’t have to have the knowledge or experience; however, you can hire someone who does.

10.  Providing Convenient and Affordable Services

a.     Value: By providing convenient and affordable services to your target market, you are able to achieve a competitive advantage over your peers.

b.     Rarity: It is not rare for businesses to provide convenient and affordable services; it’s how they gain their customer base.

c.     Inimitability: It is not inimitable. Others can provide the same services at convenient and affordable prices.

d.     Non-substitutability: Convenient and affordable prices are substitutable with provide more costly services or not providing services at all.

I believe that my most important resource is the knowledge I gain of my target market. All the other resources fall under the umbrella of this resources. By effectively gauging what is needed of those I plan to solicit as clientele, I am better able to build a business that better meets their needs.