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Competition is actually healthy for businesses, because it forces you to innovate, keeps everyone on their toes, thereby staying ahead of the curve. With no competition, our mindset very quickly becomes that the business owns the customers, and they have no place else to go. On the other hand, competition can also be intimidating because you don’t want to back down, and you feel there is a malicious force out there somewhere, trying to take your customers but you aren’t sure how to face the competition. Here is how you can use your competition or your competitors to your own advantage.
- Avoid ‘no competitors’: Not minding how you look at it, saying you have no competitor is a step unto failure. First, by definition, all good ideas are competitive, and all real markets have competition. Lack of competition entails either that there is no customer need, or the opportunity is small and not compelling enough. More often than not, investors know the market better than founders know and can name competitors better than the founders.
- Know your past and future competitors: The founders are expected to know about competitors, who failed in the past and about expected possible future competitors as well. When investors think about opportunities, they don’t only think of them in the present moment, the investors want to know what exactly is different now, what conditions didn’t exist before, and why this time is going to be different. Similarly, it is important to think about whom else may enter the market. This isn’t gotten merely by predictions because predictions are difficult. Proper market research will give you an insight into these things.
- Know and Build a relationship with your competitors: By knowing your customers, you can build a relationship between them and your company, extending the customer lifecycle beyond sales. Sometimes, talking with your competitors helps you, it is interesting to talk to them and get their viewpoint, without revealing too much, so don’t be afraid to reach out to other business owners in your industry. Be courteous, even if the competition is not. You never know what the future holds, it may require you to join forces, or create a partnership.
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- Understand the Competition: To understand your competition, it is important to begin by examining the marketplace. Take a hard look at the things your competitor does. Does that company have close relationships with customers that lead to conversions? Do they have a unique perspective to tell their story? What are the unique characteristics of their brand? Then examine, to see what your competitor doesn’t do, and try to fill in that part of the market.
- Look after Your Existing Customers: The aim is to attract and retain customers, however, don’t forget the customers who are already loyal to your company. When you expand your market options, maintain some current aspects of your marketing to keep performing well with your existing customers.
- Keep Innovating: By constantly innovating, your team will stay focused on the goal while keeping your customers glued to your company.
- Learn from Competitors’ Mistakes: Your competitors are an educational opportunity for your company to learn and get better in many aspects. Most of the decisions they make and the actions they take are going to be public, or noticeable, and you are in a good position to learn from their mistakes and their successes.
- Adjust their Ideas: You should not steal your competitors’ ideas, but you can pay attention to similar ideas they have that you haven’t had a opportunity to try, or to new ideas they have that you would not have thought of. You can adjust their ideas with your own unique execution.
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