Why Competition Can Be a Catalyst for Business Growth.
Does a simple mention of the word “competition” makes you paranoid?
Competition is one major concern, especially for new business owners, whom might see, competition as a threat that steals their customers and market share, copies their ideas, and leaves them without sales. Some business owners even wish that their company would be the only one in the marketplace or pretend that the competition doesn’t exist, But it simply won’t come true – and it will never do their business any good.
How will you ever grow or succeed if you have no idea who you’re up to?
This simply means that competition is a good thing for businesses. Particularly when it is healthy, acting as a great catalyst for business growth.
You simply have to make it work to your advantage.
Competition is something that you can’t ignore.
As Herbert Hoover, the 31st US President, once said, “Competition is not only the basis of protection to the consumer, but is the incentive to progress.”
Here’s how competition can help your business:
It’s a sign of a healthy marketplace.
Your product or service might be awesome, but without any demand, you might get to see the doom of your business.
Knowing that there is demand is a clear sign that people want what you offer. This is good for start-ups, first-time entrepreneurs or businesses expanding in a new market. You simply have to challenge yourself to market it better than your competitors.
It keeps your focus on customer needs.
If customers have no choice but to buy from you, you won’t be motivated to improve your service or make them happy. With competition, you’ll get to prioritize your customer’s needs and strive to be a customer-centric business. You’ll be inclined to see your business through your customer’s eyes. Thus, instead of your competition breaking or making your business, it would be your loyal customers.
It drives motivation and innovation.
Healthy competition is a great way to motivate yourself and your employees. It makes you get out of bed every morning, driven to work on your business. It makes you think outside of the box, seek improvement and find the best ways to do things or serve your customers. You become more engaged instead of being complacent on how things are going. It’s also a great opportunity to exploit industry trends.
It encourages differentiation.
Competition forces you to stand out in the market. Instead of copying and doing the same thing as your competitors, you’ll get to offer something unique and valuable to your customers. This makes you understand your target audience better and find the best solution to cater to their needs, for example, through better customer service or improved product quality.
It’s a valuable learning experience.
When you watch the competition carefully, you’ll gain more knowledge and resources that differ from your current assets. If your competitors are thriving, they can serve as an inspiration for you to improve, manage and grow your operations. You’ll also get a chance to assess your weaknesses and find ways to overcome them. It’s also a way to establish yourself as an expert in your market, which would increase your credibility and ultimately sales.
It can lead to unexpected partnerships.
Don’t dismiss the possibility of future alliances, mergers, partnerships or even acquisitions with your competitors.
It’s a good way to expand your overall market share and collaborate with each other’s resources and tools.
Rather than allowing competition to impact your business negatively, take advantage of the opportunity that it brings. Think positively by keeping you focused and strengthening your business.
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