Product sourcing and value creation is accomplished differently for every industry. Your budget will help you to determine where you need to be. If you cannot compete on price than you may bundle other value into the package. Look at how Microsoft a relatively minor player in the 1990's bundled their software to steal the market share of personal PC's from IBM. Main street companies do this on a smaller scale all the time.One method is to offer training for aps or any number of other add on services that give your proposition more value than the big shops. lay away programs, and loss leaders with add on warranties, etc can really work well too.
In the beginning of any venture it is essential to do a SWOT Analysis which includes researching all competition in your market including indirect competition, It is most important to fully understand their model, i.e., exactly how they capture value. Microsoft does this differently with XBox One compared to how Sony does it with PlayStation 4. From that investigation you should be able to figure out who you want to be and who you can be in your market. Also join important trade associations. Cultivate alliances with suppliers and by all means keep up with changes in your industry.
Most market changes you will learn about as a continuing education in the course of your operations. Sometimes you learn late. So don't go too deep with any one product. have a healthy diversification so that all of your eggs don't fall to the ground at once. Attending big trade shows and continuing your own technical education will keep you relevant as a knowledge based salesperson. Focus on providing exceptional value to your customers, improve your own company's productivity incrementally, keep score of the numbers, know your customers,find ways to innovate, update and invest in improving. Provide more value.
You have a certain profit margin that you put aside (retained earnings) to invest in the business. Scale the operation up where there is sufficient revenue and profit. Attract and invest in good people. Add on only new services thatcompliment the existing ones and keep to your core competency. Most importanttake care of the feedback, and survey often to improve your "Net Promoter Score" . Do all of this and the rest takes care of itself.
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