Entrepreneurs who are considering business formation are probably well aware of the existence of big companies that could be their competitors or potential acquirers – often called incumbents. But these major corporations don’t have to stop new businesses before they start.The Business Insider advises entrepreneurs to think ahead to what their company is building that will eventually be part of the incumbent’s product roadmap. The simplest way to do this is to consider whether a planned business’ services would be strategic for the big companies.
If business plans seem like they could coincide with big company strategies, entrepreneurs should anticipate that incumbents will enter their marketplace at some point. This could mean it would be wise to plan finances appropriately in order to be eligible to be acquired by the big competitor.
If entrepreneurs want to retain autonomy, they should brainstorm what their small company can do that big companies cannot. Customer relations or software with a social component are often downfalls of big business, says the source.
Whether an entrepreneur finds a unique niche in a market or merges with an incumbent, all startup business types stand to offer something new to any industry.
Entrepreneurs can learn how to incorporate their businesses through guidelines on the Small Business Administration’s website or through the counsel of professionals.