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From the days of clipper ships to FedEx jets, customers have always valued speed. Other businesses built with speed as a key competitive advantage include Domino’s Pizza, Dell Computer, and any company that uses Web and e-mail applications. 42 Action Step 3 Some businesses have inherently weak competitive advantages. Electronics or appliance retailers, which sell the same products as their competitors, are often forced to compete solely on price and a reputation for service. There are exceptions, however.

They are: • generally outwardly focused, influencing how your business will interact with its external environment including your customers, competitors, suppliers, and the government. • about how your company will achieve a strong and long-lasting position in the marketplace, or competitive advantage, which is key to your ability to attract customers or to price products that earn a profit. • specific, simple to implement, and based on reasonable assumptions. • a blueprint for building the results you want.

The total estimated price of all of these items will become your startup cost whether you’re buying more toothpaste tubes, an ocarina factory, or simply installing a new telephone line on your desk. If there’s any item in your estimates that seems unreasonably high (the Wall Street Journal ad is a likely culprit), research alternatives. Keep in mind that it’s better to include every element you truly need along with a reasonable estimate of the cost of each item, so you don’t run out of money or default on your loans.

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