The journey toward marketplace success varies considerably from entrepreneur to entrepreneur due to the differences between each entity’s business model and purpose. For some, going too big, too soon, spreads resources thin in the most precarious phase of the marketplace development process, resulting in disaster. For others, going big in the earliest phases pays out in dividends in record time. Knowing whether you should start small, or go all out, requires the analyzation of many different factors that may contribute to or impede the success of your endeavors. Consider the following areas to decide how to approach the establishment and growth of your online marketplace.
Differences in Marketing Needs
To promote the success of your marketplace, you must simultaneously advertise to your vendors and end customers. Neglecting to reach your target audience on either end can result in mismatched input and output levels that result in poor performance figures.
If you choose to throw caution to the wind, you may have an extended period of poor performance that threatens to deplete your savings. By diving in, you may feel pressured to find and enact the best marketing methods before your finances are depleted. Starting small, on the other hand, allows you more time to make marketing changes on the fly and try out new advertising avenues. As you experiment with different marketing methods, you can gauge their overall ability to bring in vendors and customers, which can help you achieve great success in the long term.
Ability to Fulfill Distribution Orders
In the early years, marketplace growth frequently follows an unpredictable path that eventually favors upward trends. Periods of stagnant growth can contribute to a decreased ability to fulfill distribution orders, causing customer satisfaction levels to decline rapidly.
Going big right out of the gate can further complicate this issue by flooding your marketplace with negative reviews across the internet landscape. Starting small allows you to weather the rough periods by finding creative ways to boost your distribution abilities before customers begin to voice their concerns. Since public perception plays a huge role in marketplace success, it is important to fully prepare for distribution irregularities to keep your company perception positive at all times.
Influence of Production Potential
As your company metrics rise and fall, your vendors must properly respond to customer demands to fulfill their role in your marketplace. If their production cannot immediately ramp up and fulfill demand, your marketplace will take the heat from dissatisfied customers. You need to create a platform that allows your vendors to naturally meet customer expectations without regulating their actions too much.
Starting your marketplace off small allows you to slowly scale your operations as your vendors prove their ability to keep up with the needs of your end clients. Going big, however, can pay off if you experience a surge of popularity that your vendors are able to handle. Unfortunately, the risks scale along with the size of your marketplace, especially if you do not have the marketing and distribution factors adequately controlled.
Overall Impact of Finances
If you can confidently fulfill the marketing, distribution and production demands of your marketplace, by all means, consider skipping the safe route and go all out in the development and growth of your company. You must verify that your existing finances will keep your marketplace afloat as your company goes through several ups and downs in sales and fulfillment. You must be able to weather the storm and come out the other side unscathed to successfully launch your marketplace in a big way.
For those with any doubts about their ability to keep their marketplace afloat during tough times, it may be better to start small and slowly ramp up growth as you achieve success. You can set growth milestones that allow you to expand in a measured way without overextending your finances or abilities. By starting small, you may not achieve success as quickly, but you will likely experience fewer difficulties in managing the marketing, distribution and production phases for your company.
Either way, remember to remain honest with yourself to keep achieving your marketplace growth milestones on target and achieving true success in this realm. There are many paths to success. You just have to pick one and see it through to meet your unique marketplace goals.