Potential start-up companies saw what Amazon, Yahoo, and eBay accomplished and related their success to being the first in each market. It seemed rather simple. Come up with a business idea, rush to get it funded, advertise the crap out of it so people will know that you were first, and get as big as possible in the least amount of time. What they failed to recognize was that Amazon, Yahoo, and eBay each had sound business plans and great management teams that were focused on building a strong foundation with unique characteristics, which is crucial to sustainability. Being first definitely gave them an advantage over competitors, but that advantage would soon wither away if the only focus were on growing rather than building a sound company.

Just because you’re a FM doesn’t mean t

There are several disadvantages that FM’s face. First is the time and money it takes to educate people about your product or service. Most likely if you’re a FM, your idea is new to a majority of people and they will have to be taught how to benefit from it. Second, which will be discussed in more detail later, is the opportunity competitors will have once you have educated the market. It will be much easier for a competitor to come in and copy your idea, often at a much lower cost. Third is the limited time frame FM’s have to build their image and product awareness. With so many competitors waiting to jump on a proven business model, FM’s rush to cement their market share while often overlooking problems with their business model, or not having the time to perfect it. Last is the possibility that FMs will overlook what the consumer really wants out of their product or service because they are focused on other things. A FM’s might think that their product or service is selling well, but in actuality, the consumer would prefer better customer service or a broader product line. These are only a few of the risks that FM’s face. Often FM’s overlook these risks and associated costs while thinking that just because they are first they will succeed.

It is difficult to say which is better, being a FM or a late entry into the market. Both FM’s and SM’s have their advantages and disadvantages. If two identical companies with the exact same business plan entered the market, the FM would definitely have the advantage, but that is not likely. FM’s do have the advantage in market share and consumer awareness in the beginning, but they have to take strategic steps to maintain the business.

hat your business plan will succeed. Being first in a market is only an advantage when you do something with it. Lets look at eBay, one of the most successful Internet companies in the world. What if eBay was so caught up in being a FM that they failed to set up a sound business plan. What if they dove in to the online auction market and only worried about gett

Some topics in this essay:
Amazon Yahoo, FM’s SM’s, FM SM, FM FM, FM’s FM’s, , market share, business plan, product service, business model, sound business, yahoo ebay, amazon yahoo ebay, advantage market, rival companies, amazon yahoo, entering market, plan available financing, business plan succeed, sound business plan, business plan available,