Competition is completely normal for businesses even with the most innovative ideas. Without competition we may become complaisant in our endeavours. There are a number of reasons competition can actually be good for your business.
Drives Improvement
When our businesses are successful, we can tend to take it for granted. Competition prevents this. We have to stay ahead of the curve and continuously look at ways to improve our business and the services or products we offer. Competition enables you to become the best at what you do.
This includes price point. If your business aims high, you may be forced to look at your service and ways in which the business can justify it’s prices. Is there something different you offer, is it a more luxurious service? What sets you apart?
Reassurance
With competition it gives us reassurance there is demand for our product or service. Demand is what drives the market but also drives the competition. If there is competition and customers are choosing your business over others, it also confirms you are standing out from others and the consumers choice.
Specialisation
Competition helps create specialisation in a field. With such a demand for certain products and services, we can get lost in the masses if we don’t hone in our services. For my own personal business, as the demand grew, I had to set my business apart. For us, this meant a USP (unique selling point), something we could offer that none of our competitors were offering.
Specialisation will deliver a unique group of customers who have a passion for the service or product you offer. They as a result may act as ambassadors for your business and will most certainly advertise your business.
Understand the market
Competitors let us understand the market place. They allow us to do value market research to see what works and what doesn’t work. With competition it allows us to see what your customers want and what may make your business better in the long run.
Competition is healthy and should be viewed as such. Our competitors are all going through the same process and often you may actually find it useful to work together. If your services doesn’t quite suite your current customers they may find another business a better suit and vise versa. An example of this is doggy daycare. My facility is large and caters to a different market than a smaller daycare. On occasion we find that certain dogs may be a better fit for a smaller facility. For these cases. we built up strong relationships with companies we trust and we will recommend to our customers. These smaller daycares will also send customers our way. This is a prime example of how competition can actually benefit your business and build on your sterling reputation.