A recent report published by McKinsey & Company estimates the global wellness industry at more than $1.5 trillion, with an annual growth rate of 5-10%. The report paints an optimistic picture for entrepreneurs looking to enter this space. But, as with many industries, small businesses should expect to be met with serious competition.
Today, we explore four actionable steps entrepreneurs should consider to optimize their chance of success.
As a small business, pennies and seconds matter. Wasting time and resources toward activities that provide low or no returns can quickly lead to failure. Instead, practice a culture of organization and planning. It could include:
- Designing a solid business plan that lists all goals and timelines,
- Maintaining a daily to-do list to allow you to stay on top of deadlines and efficiently allocate resources,
- Creating a budget and monitoring each department’s performance against it, and
- Leveraging project management tools to assign tasks to employees or vendors, and track progress.
Analyze the Competition
Businesses in the health and wellness industry already sell thousands of products and services to millions of customers across the globe. As a new entrant into the industry, you must pay close attention to competitors, including in the following aspects:
- What market share do the existing businesses hold?
- What are their price points?
- What is the consumer sentiment towards their products?
- What areas have they overlooked with their offerings?
Based on your findings, seek out areas where you can capitalize and solve customer problems currently overlooked by existing businesses. When you see customers expressing dissatisfaction with existing products, consider creating a product that meets their needs.
Leverage Digital Marketing
To help you understand the role digital marketing can play in the success of your business, here are a few statistics reported by Neal Schaffer:
- 63% of customers expect businesses to provide customer service on social media,
- Around 40% of individuals aged between 18-34 years buy products through social media,
- 86% of US consumers expect brands to be transparent regarding their online practices, products, and services. Failure to do so can lead to them choosing another brand.
Customers expect businesses to use social media as a holistic platform to sell products, share their views and provide customer service. As such, your business will need to invest in creating a robust digital presence, which can be done in the following ways:
- Creating brand accounts on all prominent social channels and regularly posting content,
- Using marketplace features on social platforms to directly sell products,
- Designing an engaging, responsive website where customers can learn about your brand, products, and even goals, and
- Exploring other content marketing avenues such as writing blogs and email marketing.
Choose The Correct Business Structure
As an entrepreneur, it is crucial to ensure your financial safety and that of your business over time. When it comes to choosing a business structure, consider creating a Limited Liability Company (LLC):
- An LLC registers your business as a separate legal entity, protecting your personal assets and finances from litigation,
- With an LLC, you will avoid double taxation and pay taxes only once when filing your income tax,
- An LLC makes you eligible to use business expenses as tax write-offs,
- Since an LLC does not require forming a board of directors, you will maintain complete control over business decisions and operations.
Registering for an LLC can take up to a few weeks. However, you can expedite the process by using a formation service.
With effectiveness, targeted products, laser-focused digital marketing, and the proper business structure, you will have forged a good foundation for the success of your wellness startup.
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