Most of us were conditioned as children to be our best — to win, to be better than the rest. We played sports, we took part in the science fair, we stood on stage for the spelling bee, participated in talent shows, etc. That probably lasted throughout high school, and then in college we encountered new forms of pressure to get good grades and land internships. Soon enough, we graduated and started fighting it out with other candidates for jobs.
The point is, you are a competitor. You were born and groomed to win. So it’s no surprise that when owning and operating your own business, you find yourself strategizing to take down your biggest competitors. You do so by spending more on marketing or advertising, offering promotions and discounts or constantly innovating to find new ways of servicing your customers.
And it’s inevitable that you will indeed have competitors of some sort. Even if you are the first business of your kind, you probably won’t be the only one for long. However, competition may not be the worst thing for your business after all — in fact, it may be the best thing.
Pros of Competition in Business
Competition in business can be a healthy thing. Of course, extremes of anything aren’t always good. While too much competition is not good for your business or healthy for your overall wellbeing, there are many reasons you should look forward to having competitors. Here are just a few:
- Challenges you and your business: Complacency is horrible for business; it’s often how companies die. When you get too comfortable with your business, that means you aren’t reaching your full potential. Having competitors in the marketplace will spur you to work harder and become more innovative.
- Improves the overall market share: More competition brings more awareness to a product or service. Demand tends to increase when multiple players step into the game. Overall consumption of your goods and services can increase due to an increase in competitors. That is a fancy way of saying that you may see more sales of your products or services. A big win for you!
- Drives innovation: Competition will push you to constantly create new products and services in order to stay ahead. You will want to differentiate yourself from your competitors, which will inspire you to be more creative and build better products for your customers.
- Improves your customer service: Customers care about service a lot, and focusing on the competition will keep you on your toes. Your business may offer the best product, but if you have the worst customer service, your current customers won’t be back. Don’t let potential customers read poor reviews about your service and decide to purchase from a competitor. Be the competitor with better service!
- Learn a thing or two: Watching your competitors will always be a learning experience. This is where you have a front row seat to witness their successes and failures. You can evaluate what worked or didn’t work for them and make an educated prediction or decision on whether your company should attempt to do the same.
Even though competition can be healthy, it can also be harmful to your business if you don’t have the right protections in place. After you form your business, consider the important steps you should take next to make sure that your business is protected, such as registering your trademark. Incfile can assist you with everything you need to manage your company so that you’re always one step ahead of the competition.