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Tag: Pavlo Phitidis

What does it mean to be a 'leading business' in your industry?

What does it mean to be a ‘leading business’ in your industry?

In the world of small businesses, defining and achieving industry leadership can be a complex but rewarding goal. This article discusses what it truly means to be a leader in your industry and outlines practical steps to move from a vague vision statement to a measurable and achievable business objective.

What Does It Mean to Be a Leading Business?

Many companies state in their vision or mission that they aim to be the leading business in their industry. However, when pressed to explain what “leading” actually means, business owners often struggle to provide a clear definition. Without a precise and measurable definition of leadership, this goal can become an empty claim.

The Importance of Clarity

To become a true industry leader, a business must first define what leadership means in its specific context. Is it about market share? If so, who constitutes the market? For example, if you are in the business of manufacturing luxury furniture, you need to break down what “luxury furniture” includes. Is it dining room tables, sofas, chairs, or lounges? Understanding your market and product specifics is crucial.

Setting Realistic and Measurable Goals

Let’s say your focus is on luxury dining room tables. The first step is to determine how many such tables are bought annually in your target market. If you identify that 500,000 dining room tables are sold each year in your defined geographic region, you then need to ascertain how many of these qualify as high-quality luxury items. Suppose 5,000 of these meet the high-quality standard. This gives you a tangible target to aim for.

Understanding Market Share

To claim industry leadership, you must know your competitors and their market shares. If you have ten competitors and the market is evenly split, each would sell about 500 tables annually. If your goal is to be the leading supplier, you need to sell more than 500 tables per year. By consistently increasing your sales figures—say from 500 to 600 to 1,000 to 1,500—you can objectively measure your progress towards market leadership.

Enhancing Business Operations

Achieving and maintaining a leading position requires continuous improvement in various aspects of your business. This includes enhancing the quality, price, service, delivery, durability, and brand reputation of your products. By systematically improving these areas, you can increase your market share and solidify your status as an industry leader.

Claiming to be the leading business in your industry is more than just a statement—it requires a clear, measurable, and achievable plan. By defining what leadership means in your specific context, understanding your market, setting realistic goals, and continually improving your business operations, you can move towards becoming a true leader in your industry.

The Alexforbes Lead Story - 26 March

Business ownership discussion as heard on Radiowave and Radio Nova.

In a discussion on business ownership on Radiowave and Radio Nova, Aurik Namibia Principal Christo Swartz and Aurik founder Pavlo Phitidis tackled some interesting questions:

  • In uncertainty, what should the mindset of a business owner be and why would it matter? 
  • Should a business owner want growth and if so why is it needed and what growth rate should be the goal? 
  • To run a business and to grow a business you need employees but how do you find qualified people in an skills shortage? 
  • When you set a strategy for your business, what’s the best approach to keep it real, simple and doable
  • What are the top 3 ingredients of business success that you see across all successful entrepreneurs? 

You can catch the recording of the discussion here:

Or join Christo and Pavlo for a Business Battleplan workshop on 11 April, to build out your own customisable, implementable battleplan – Click here to register