Becoming a responsible business owner involves thinking not only of your business, but also of all the others that are out there competing against you. When you think of the tasks involved in keeping your business running smoothly, at the back of your mind is always that nagging thought that maybe someone else is doing a better job.
Use your competition as a tool to learn how to make your business better.
Before you can measure your business against others that are competing against it, you will first have to identify who your actual competitors are. In a new and emerging business, this will be something you will have already done but for a small business that has been around awhile, the competition is constantly changing, especially as your business evolves and adds new services or products. A good idea is to join your local Chamber of Commerce to keep up with any new businesses that are opening in your area.
Ask yourself some questions. What are your strengths? What do you and your team bring to your business that no other can match? There are services you can provide that outperform the competition. Make sure one member of your team acts as a scout, always on the lookout for what’s new and what you already provide that you can improve on. This can be advertising, face to face customer service or improved products.
Rather than worrying about what your competitors do better, learn from their mistakes and remember that being overly confident can also keep you from getting ahead. Sometimes you can be so sure that what you are doing is the next best thing that in the meantime, the greatest thing is looking you right in the face.
While it’s good to respect your competition, your focus should be on what you may be doing wrong that could mean the end of your business. Once a month take the time to go over what you are doing and decide if you are still on the right path. This can be the best way to adjust and correct for any errors that could put your business, out of business!
Try shopping for your own service or product. This is an excellent way to see what’s out there and to ask questions of the competition. Sometimes this can give you ideas for your own business just by listening to the offers available. Ask for special deals or promos and see what your competition is offering. Decide if this is something you could do, if only for a short time to bring in new customers. Then focus on your niche and create a niche within it, either by providing the best service available or an improved product. Give your business just that little bit of difference that makes it identifiable without being too different. Make your identity as a business owner stand out as part of your business. This gives it personality.
An important way in which you can make your product or service more valuable is by offering a slightly different and broader mix of items or those which are difficult to find. Small businesses can have the advantage over large companies when it comes to changing directions quickly and this includes new products or a different way of using them. A good example is Canada’s present wireless market. The three major carriers are in a flat out race to be king of the hill and now have the spectre of Verizon entering the Canadian market. With a small business you have the advantage of knowing your customers better and quite often on a first name basis with them, which a large corporation just can’t do. You know what your customers need and want and you can gain their loyalty by providing it.
Remember, a competitive advantage is something you will want to sustain over time. This is done by providing customer value such as quick service and delivery, competitive pricing and and convenience. What you are offering must be seen as valuable to your customers and your business strategy should be one that your competitors find difficult to duplicate. Use the tools you have available to outsmart your competition.
© Chris Draper, DemGen Inc 2013
