What if I told you having business competition is a good thing? It’s true! Why? Well, as the saying goes, “Cream always rises to the top ”. In business, having competition nudges you to simply be better. Yes competition can be scary, but it’s also something that you should value and leverage to boost your success.
Here’s 5 reasons you need to embrace competition:
Specialization is product of business competition
Competition allows businesses to specialize, find their niche and enhance their expertise. This makes your marketing clearer and more effective, will likely allow you to charge a premium and positions you as the “go-to” in your industry. As a result, your offerings to customers become more unique and valuable, further solidifying your place in the market.
Business Competition Encourages Improvement
You only get better when you are challenged. Business competition forces you to grow and improve. When you’re the only business of your kind in your area or market there’s nothing incentivizing you to get better. Customers shop with you out of necessity until they find a better alternative (and they will eventually find one).
When competition comes in, it’s a good test to see which businesses are willing to get creative and fight for their spot in the market. The threat of competition should trigger you to take things to the next level.
Competition in Business Indicates Demand
While some new business owners think no competition is a good thing, it’s often a sign there’s no demand for your product or service. Yes occasionally it means you’re an innovator, but let’s be honest most of us aren’t the next Steve Jobs.
“If you find yourself alone in a market wondering where all the competition is, you very may be standing alone with no customers.”Jason Saltzman, Forbes.com
Business competition typically indicates there is demand for your product or service. It’s then up to you to spend time researching the market to better understand the market size and how you can differentiate.
Business competition results in a Roadmap
Having competition allows you to gain access to a roadmap and learn from those before you. You can research and observe what worked and didn’t work in similar businesses and use this to your advantage.
Customers Benefit from business competition
From keeping prices in a range that’s accessible to providing more value, competition ultimately works in the customer’s favor. It also pushes business owners to create a better relationship with their customers. With so many fish in the sea and customers caring more about the brands they choose to buy from, having business competition gives you an opportunity to stand out if you provide top-notch customer service and connect with your customers.
Those businesses that offer a high quality product or service, provide a world class customer experience and do so at a profitable price customers are willing to pay will always outpace their competition.
All the greats in business, sports, etc have used their competition to access their full potential. So while it’s normal to fear competition, I encourage you to shift your perspective and use it to make your business the best it can be.
Not sure how to leverage your competition and set yourself apart? Book a business coaching session to talk through how your business can turn competition into opportunity.