A lot of entrepreneurs can’t answer the question; “What business are you into?” Failure often starts at this point where one fails to define what business they are into. Yahoo failed on that. Google succeeded. Yahoo was many things, it failed to define its core. It confused its audience in the process. Personally I was confused. Was Yahoo a media company? Was it a search engine? What was it?
When we started www.bigeye.ug. Our aim was to create a one-stop website for everything in Uganda. We wanted to do it all. If you had a chance to look at our first website. There was a dating platform, an online shopping platform, an internships platform, a jobs platform, free sms, we had free music downloads. We had everything. It was impressive for the first time visitor.
Months later, it hit us that we had to define our core business as early as possible. And we decided that we were going to triple down on entertainment content creation. And that has been our core since then. No other website has beaten us at this core. People often give examples of other websites and they are wrong. For example take www.howwe.biz, it is not in the business of entertainment content, it is in the business of free music downloads and no one beats them there. www.campuseye.ug is in the business of campus content creation.
Every business must always understand its core and be very clear on it. Failure to do this is recipe for failure. Once you understand your core, you can outsource all the other sections of the business. But never, never outsource your core otherwise, what’s the point of having you in business if you can’t run your core?
Your core is where you establish your business moat, your competitive advantage. The moment you are outcompeted on your core, you are finished as a business. The reason www.bigeye.ug has been here for more than 4 years is because we understood this and continuously explain it to each person on the team. We can outsource our website development, photography, advertising and sales, but we never outsource our core.
So let me ask; what business are you into?