When it comes to dealing with competition, every entrepreneur ends up feeling a certain fear, insecurity, and, consequently, anxiety. This is perfectly understandable as building a business takes a lot of time, money, and personal investment. Having a direct competitor competing in your market is a stressful factor, and it is normal for this to cause a bit of fear in the entrepreneur.
How important is the competition?
Unlike many entrepreneurs’ imagination, the lack of competitors in a given market is not a plus point. Poor competitiveness can mean that the chosen market is weak. Competition is a positive point of business. It is through competitiveness that entrepreneurs invest in innovation and improve their services. In a way, competition makes businesses think of different strategies to get around the same problems. This promotes growth not only of the business but of the people associated with it.
If there were no competition, entrepreneurs would worry less about the quality of the product they are offering. Healthy competition between businesses works well because it is well known that the entrepreneur who achieves the highest quality standard will sell the most. Thus, all companies want to become a reference in their market.
How to deal with the competition
As innovative as your business is, it is impossible to stand alone in a market. Sooner or later, competitors emerge to compete for space with your business. If you are not careful and strive for excellence in your services, you may be overwhelmed by your market opponents. Knowing how to extract the good things from this competition and learning how to deal with it can be very beneficial to your venture. But how do you do it? Below we will give you a few tips to help you.
1. Know your market
The first step in dealing with competition is to understand your market. You have to be an expert in your niche. Understanding how the public thinks, where to find the best suppliers, knowing which keywords are most sought, and keeping up with market swings is critical. If you do not master your area of expertise, you are certainly losing ground to the best prepared. Therefore, study, seek knowledge, and always be aware of changes and new opportunities.
2. Focus on your persona
Another crucial point is knowing how to impact your audience best. As much as you and your competitors sell the same products, they don’t necessarily sell to the same person. For this reason, it is important to understand everything about your persona. You should know:
• Which language works best with your customers?
• Does your persona buy in an online store, marketplace, or social networks?
• What social networks is your audience in?
• How much money is your persona willing to invest in your products?
All communication and sales strategy must be focused on your persona. This is the differential that will make you achieve success, even with the strong competition in the industry.
3. Analyze your competitors
To beat the competition, you need to know it. You must know exactly which brands compete with your business and keep track of them daily. Understand what makes market leaders perform better than yours and why smaller competitors are not doing well. Analyze competitive strengths and try to adopt best practices and strategies for your business. Try and evaluate which topics your company stands out from other players in the market.
The idea is to learn and improve your business with the best attributes of your competitors while reinforcing your differentiation from them. Take a careful look at your competition, looking coldly at your biggest weaknesses and strengths. Some of the interesting things to note are the online presence, audience treatment, quality of products and services, advantages offered to buyers, and time spent by these companies in the market.
4. Escape the price war
The price war is neither beneficial to you nor your competition. When companies compete to see who sells the lowest priced product, they all reduce their profit margins and risk going bankrupt. Instead, the solution is to focus on your persona and establish differentials that go beyond price. Customers should want to buy from you because they trust your business, like your communication, and identify with your proposal. Not just because it’s cheaper.
Involving your business with price wars is not lasting, as there will always be some competitor willing to sell at a lower price than yours. This compromises the profit margin and the future of his business. It is the differentials that make your business successful. Price is not as important as your communication, brand authority, sales strategies, and the entire identity of your business.
5. Build customer loyalty
Your audience is your greatest asset. It is well known that customer loyalty is much easier and cheaper than attracting new buyers. So make sure your business values customers. Practice incredible customer service from pre-sale contacts, through the buying process, to after-sales. Offer advantages to your brand-loyal audience, produce valuable content that engages your customers. Get professional service and make sure all your business strategies and news are always customers focused.
6. Be ethical
Your competitors are entrepreneurs like you. These are people who are in the market looking for success, just like you. Do not use in bad faith to harm competition. In all company decisions, it is critical to be ethical and honest with both customers and competitors. Your reputation and your business are very valuable. Respect the agreements, laws, and rules of the market to build a solid business.
7. Learning from opponents
Competitors may also have valuable lessons to pass. Research the most successful cases in your industry and seek to incorporate its strategies and ideas into your business. Another tip is to be aware of the mistakes already made by these companies. It is easier to avoid them in the future if you already know them now.
Healthy competition is good for business. There is always the possibility that your competitor may eventually become your partner in the future. So keep an eye on the synergy between your company and others. Remember that maintaining a solid reputation is invaluable in business.