Competitive Advantage Defined
For the business to succeed, it is important to have a competitive advantage over other companies in the industry. Simply put, this is the way that the company is going to differentiate itself and outperform other companies in the same industry. The main sources of competitive advantage for the company will be superior product and customer support, superior database management, strong marketing strategies, and a strong management team
Superior Product and Customer Support
Many entertainment companies are not full-time, and therefore cannot respond to customers quickly enough to convert every request. As a full time business owner and entertainer, I intend to respond to customers more quickly than the competition can and ensure that I am providing them the information that they need immediately. The primary purpose of this is to discourage them from making a call to additional companies and to book their entertainers with me immediately. One of the keys to my business is the ability to offer several types of entertainers, serving a wider variety of customer needs than any of my competition can. This is superior product and customer service, providing me a competitive advantage over other companies that are otherwise equal to me.
Superior Database Management
Since I am determined to have high client retention rates, I intend to keep track of all of my customers and determine whether or not their events will be recurring. For example: if a company hires me for two events, I will be sure to contact them again the following year to see if they still have a need for entertainers at those recurring events. Those who have private parties may be called with a promotional discount 60 days before their child’s birthday comes around again. Finding new customers is more time and capital intensive than retaining existing customers, and the long term growth of the company depends heavily on client retention.
Strong Marketing Strategies
Excellent marketing strategies will allow the company to increase its visibility and increase awareness in the community. These strategies will be based on several factors, with varying levels of capital investment. Since the company’s labor costs are lower than other companies and profit margins are higher, Simply Smiles will be able to dedicate more investment to advertising and marketing. The company’s social media will be highly active, spreading photos, videos, and information about its various appearances around town. These strategies can be used to both reach new clients and convince potential clients that we can help boost the visibility of their events.
The first goal is to do internal search engine optimization, pushing the company to the front page and later the top results of Google searches for particular entertainment services in its area. Many customers search for entertainers this way, and investing time and capital into this optimization will allow the company to earn clients without additional investment. Secondly, the company will be present at a huge number of recurring events across the area, allowing word of mouth advertising to spread quickly from our restaurant jobs and other events. Artists will be very personable and taught how best to market themselves and the company. Lastly, advertisements will be placed in advantageous areas, online marketing will be conducted, and many organizations will be offered deals to help advertise the company.
Strong Management Team
The management team, which will consist mostly of the owner (especially at first), will be an experienced entertainer who has experience training new entertainers and communicating with all the clients. Since management will have a strong financial and personal interest in the performance of the company, there will be long hours and constant attention paid to the company and its growth. The business model is different from that of other companies, in that the owner can profit based on the hours worked by the company as a whole, rather than by the owner as an individual entertainer. This incentivizes the company to gain a higher volume of jobs and to commit more time to growth than is to be expected from other businesses.
A long-term approach will be taken, as the company will provide a rising full time income after the fourth or fifth year in business and ultimately provide a residual income if another manager takes over in the future. Additionally, with lofty goals and an ambitious approach, management will be interested in expanding the business model to other markets through either corporate expansion or franchising opportunities. The system and infrastructure of the company may provide a way for other entertainers to become successful and make a full-time living from children’s entertainment, allowing Simply Smiles to expand its earning potential beyond its primary market.