The Truth About Your Competition

Written by Marc on January 24th, 2008

I have been spending a good portion of my time lately networking and participating in many discussions about business.  I feel that this is a great way for me to learn and see different perspectives that may be able to give me an edge in my business.

There was a particularly stimulating conversation this week in one discussion regarding your competition.  Now, the discussion was relating to online businesses, but to be honest, it can apply to traditional brick and mortar businesses.

It basically comes down to this: you can look at your competition from two different perspectives. 

Perhaps the most common perspective is this: your competition is your enemy.  They take your business away from you, take your customers, and make it harder for you to make money.  You are in a constant battle with them, and you have to do whatever you can (legally and ethically of course) to win.  Now, if this point of view is your reality, you can feel exhausted from the effort you expend on keeping your competition at bay.  This can cause you to miss other income streams or earning possibilities which does affect your bottom line.  Also, this line of thinking falls into the old school thought of what your competitor is to you – which doesn’t necessarily fit in the information age.

You see, people living in the information age have a different perspective.  They consider their competitor to be a candidate for business alliances. 

Consider this.  Say you have a small firm that specializes in plumbing.  You mostly do residential work, but your competition is larger than you.  You are worried that they will swallow you up (so to speak) and dominate your industry.  If you were to look at it from a different perspective, it could be a friendly relationship.  You see, if you were to find yourself with a job that is larger than your firm could handle, you could refer the work to them.  On the same token, they would refer smaller jobs to you that would cause them to lose money thanks to their higher operating overhead.  In this business alliance, both parties help each other to make more money – instead of competing with each other.

So take a look at your competition with a good, hard look – and an open mind.  Think of ways that your could make business alliances that would help you both increase your income – instead of wasting time competing with each other.  Contact the other firm to sit down and talk about your ideas – you will be surprised at the interest your offer will generate.

Read more articles on Business Ideas.

One Response to “The Truth About Your Competition”

  1. I look at my competition as an assistant, they provide me with Ideas, and promotion help. I see their mistakes and avoid them so for me they are very helpful. and there are enough cosyumers for all of us

Leave a Reply

CommentLuv badge