Although most entrepreneurs dream of having a market all to themselves, it has been shown that you’re probably better off with having some kind of competition.
People usually think that with no competition the entire market for their product or service will be theirs. If nobody is competing in your space, it’s probably safe to say the market you are targeting is too small.
Entering a market that already has some competitors should not be overlooked. A market can NEVER be too crowded, as long as your product or service is unique and is not ‘just one of the same thing’.
The reality is competition is everywhere. No matter what business you’re in, you will benefit greatly from studying your competition. One of the most important aspects of running a successful business is knowing everything you can about your competition.
This includes everything from their marketing tactics to branding and also how well they treat their employees and run their business on a day to day basis.
When companies compete against each other, they set new standards for other companies to either match or beat. Knowing your competition should be an ongoing experience to make sure you know what there is to know about them.
Now that you have chosen to take off the blindfolds and realise healthy competition in the business world is a good thing, take a deep breath while we look at a few points on why it can only benefit you and your business in the long run:
1. Competition provides ideas you can adapt for your products or services and validates your idea
Competition validates the market and the fact that there are most likely customers for your new product or service. You can learn from what your competitors have put in place to adjust your plan. You are also able to weigh in the pros and cons from the way they run their businesses, products and services.
“Competition is the spice of sports; but if you make spice the whole meal you’ll be sick – George Leonard”
2. It identifies your strengths and weaknesses
Your competition might just be the ones who points out your strengths and weaknesses. They may also help you focus and set your concentration on what you’re really good at. Your weaknesses help you become better, while your strength drives you harder to achieve more.
3. It’s also good for your employees
Your employees will always benefit from learning, for example how to deal with situations when your competitors have more customers than you do.
4. Competition helps you focus on what’s important
Without competition, it’s easy to lose focus on your core business and your more important customers and start expanding into areas that’s not the best for your business. It reminds you every now and then to focus on what’s important.
Being competitive forces you and your business to figure out how to be different than your competition. Competition will help you build a better business.
5. Consumers also benefit
Competition is not only good for your business, it’s good for consumers. When there is competition amongst brands, consumers get the opportunity to choose on which business they can spend their time, money and attention.
6. Competition will help you work smarter
You have to be up to speed and on the ball at all times! You can’t afford to backslide or work sluggishly when you’re faced with stiff competition. When there’s competition, you must always be on your toes and always on the go! Failing to do this will give an opportunity to your competitors to push you out of the market.
7. Don’t forget about customer service
Face it, there isn’t enough time in a day to really stop and evaluate every customer, but you can still appreciate them and treat them right so that when the competition comes along they won’t be tempted to go anywhere else.
Leaving your comfort zone will help you strive to beat the records of your competitors and also to try and be the best business in your target market. Strong competition can provide valuable market insight and keep your product or service strategies fresh.
9. It will help you identify potential threats
You will be able to learn from other competitors what works and what doesn’t. Then you will decipher what strategies would be detrimental to your business.
10. Knowledge is power
When in competition, one of the ways to always come out on top is by continuous reading and researching about your product or service as well as what the competition is up to.
11. There is always room for development and improvement
While going through the exercise of keeping a closer eye on your competitors, you will most definitely gain more experience along the way, whether it be on how to better market your brand or how to keep that customer interested in coming back to you.
There is always something you can do better! Also remember to not focus too much on the competition because that can also be a bad thing. It can stifle creativity and keep you from focusing on the more important things in your business.
So now, stop being paranoid and scared of the competition, but rather take advantage of things you will come to learn about not only yourself, but also your product, service and business along the way!
“If the reason of your sleeplessness is competition, then you will make a successful businessman – Amit Kalantri”
How You Can Over-Deliver To Gain The Advantage
Go over and above for the people you serve, and you will enjoy the benefits of an abundant relationship.
Wise, established entrepreneurs know that over-delivering value — which simply means going above and beyond for the people we serve to deliver more satisfaction for our service and thus exceed expectations — is crucial to a business’s survival, growth and future. It represents the core of a company’s foundation. And without a solid foundation, a business is always vulnerable to a person or company that does over-deliver.
To ensure you don’t ever forget the importance of over-delivering value, here are three ways it will give you and your company a distinct competitive advantage:
1. Creates abundance
Success comes most to those who are surrounded by people who want their success to continue. When you over-deliver value, people may be sceptical at first, thinking that you are expecting something in return, but when you are consistent and genuine with your intentions, they begin to trust and appreciate that you are just thinking of them.
You never know the value of the value you are delivering. But I’ve learnt that if you are consistently delivering greater value to people, your value becomes more and more aligned with the immediate needs of the people and companies you are serving — and abundance in the relationship is created. This is what over-delivering value is all about.
2. Earns respect
Entrepreneurs who take the time to over-deliver value are the ones who earn respect. Typically early-stage entrepreneurs tend to find ways to be the recipient of someone else’s value in a search for momentum.
You never know which transactional seed is going to grow, but when adding value to others, this type of seed is never forgotten.
For example, every quarter, I deliver a white paper to clients with the intention to challenge their thinking. My goal is for them to know that regardless of whether I am conducting business with them or not, I am thinking of them and thus strengthening our long-term relationship. And since my white papers focus on predicting future leadership trends and business strategies, when a related topic arises in one of their strategy meetings, they don’t hesitate to call me to discuss an opportunity for us to engage.
3. Enables distinction
Entrepreneurs who add value to others create and sustain a distinction in the minds and hearts of those they are serving. After all, most people are simply doing what they’re told to do inside the box they are given. Entrepreneurs can’t afford to do that.
We are the originators, the innovators and the opportunity seekers. We live our lives constantly in search of ways to add value to make things better. We disrupt the status quo. We are not in the business of fixing the old ways of doing things. We create new ways of doing things. If entrepreneurs are technically the experts at adding value through our products, services and brands, why can’t we add value through the people we depend upon most for our success?
Over-delivering value is the key not only to being a successful entrepreneur but also to the entrepreneurial mindset we must continually cultivate in ourselves and others. No one is successful alone. We must see the value in over-delivering value by being other-directed and connecting dots of opportunity with focus and purpose to become smarter and wiser, while making ourselves invaluable to the people and businesses we serve.
How Netflix Is Now Disrupting The Film Industry By Embracing Short-Term Chaos
One wrong move and Netflix could have been nothing more than a footnote in the history of entertainment. But by staying ahead of the curve and embracing disruption, the company is threatening some very entrenched competitors.
Attendees of the annual Cannes Film Festival are typically not afraid to be vocal in their dislike of a new film — booing and hissing are both surprisingly common — but the recent film Okja possibly set some sort of record. The crowd was booing and jeering before the film had even properly begun. In fact, all it took was the name of the studio behind the film: Netflix.
Why the animosity? Netflix is disrupting the film industry, and the traditionalists aren’t happy. After debuting at Cannes, Okja wasn’t released in cinemas. No, instead it was released right to Netflix, free to stream as long as you have an account.
Of course, few would have guessed a few years ago that Netflix would ever get into the business of making its own television shows and movies. According to industry lore, entrepreneur Reed Hastings launched Netflix because he was annoyed with the exorbitant late fees of video/DVD store Blockbuster.
Instead of having to return a movie once you’ve watched it, he conceived of a business that would ship DVDs right to your door through the mail.
It was a clever idea, but not one that seemed terribly disruptive. The whole process could be a bit of a hassle, and it required you to schedule your entertainment well ahead of time. Blockbuster even had a chance to buy Netflix, but decided that it wasn’t worth it.
The rise of streaming
Even as Netflix was hitting its stride in the early-2000s, the tide was already turning. It was becoming increasingly clear that the Internet was going to be an incredibly disruptive force, but many companies failed to notice. Or, if they did notice, they failed to take adequate action.
By 2007, the potential of streaming TV shows, films, music and books online was clear, but the DVD business was still doing well. However, Netflix decided to prepare for the future (and disrupt its own operations) by launching a streaming service. It did this by going to the traditional movie studios and television networks, and asking to licence their old content.
In the view of these studios and networks, old pieces of entertainment had run their course, so they were pleased with the new revenue stream.
This brings us back to Okja. Netflix has been creating its own content for the last few years because it realised that studios and networks would eventually catch on. At some point, they would understand that they were giving Netflix the ammunition needed to disrupt the industry. Why have Netflix stream your content if you could create your own streaming service?
“The goal is to become HBO faster than HBO can become us,” Hastings said of one of the most popular American cable channels back in 2013.
In a mere 20 years, Netflix has gone from a low-tech operation that sends DVDs through the mail to one that not only streams content online, but is also producing its own content — content from some of the most respected actors, producers and directors in the world. All of this is costing Netflix hundreds of millions of dollars, and it remains to be seen if this strategy will ultimately pay off, but betting against Netflix is risky.
Netflix has shown itself to be uniquely capable in drastically shifting its business model. Here is how Hastings explains it: “Short-term optimisation about being efficient is the death of long-term success and innovation. Building Netflix, we created a company that tolerated some short-term chaos, and we manage right at the edge of chaos. The value of that is keeping and stimulating the amazing thinkers, so when the market shifts, like DVD to streaming, or licence to original content, we have in Netflix all kinds of original thinkers, and that is the long-term optimisation that all of us in organisations want.”
SME Leaders: How You Can Manage Growth
Fresh growth is all around us this Spring – find out how you can powerfully manage growth as you provide leadership to your SME.
In the transition from start-up to scale-up, a critical factor for a growing business is the quality and strength of its leadership team.
Learning to trust and empower staff is a crucial step for SME leaders who wants to grow their business upwards.
As a business grows, one of the biggest challenges for the business founder and leader is the hand-over of an idea from the founder to the people who work there, The brand moves from being one person’s idea to being the professional focus of a whole group of people.
Without effective leadership, small businesses will be held back, more than three-quarters of SMEs provide no leadership development for their staff. What does this mean for you?
If you lead your business with vision and clarity, you set yourself apart from your competition. Here’s how.
Lead the pack
A growing business creates more work than a leader can handle alone.
As the team grows, founders often react by micromanaging the details of their business. In trying to take on everyone else’s job, the founder often leaves the most critical position vacant: strategist and vision-setting.
Learn to trust and empower others in the organisation and you will find you have room to innovate, which is critical for business growth.
Steady the ship
An effective leader will also engage others in the business to embrace and adapt to change as growth continues.
- Vision: First, plot the course for where the business should go in the short term, and the long term.
- Change: Understand what needs to be put in place to grow the business. You might need to source better business operating systems to streamline this growth, or change a few internal business processes, or rethink how you calculate your hourly rates.
- People: Growth equals change, and change equals pain, so if you want growth, budget for pain. Understand that you will need to guide and coach the staff into changing their mindset and adapting to these growth changes.
- Silver Linings For Smaller Businesses In Budget 2018
- Leadership: What Is Your Why? (Read Purpose)
- Start-Up Law: I’m A Start-up Founder. Can I Pay Employees With Shares?
- President Ramaphosa’s Support Of Entrepreneurs And SMEs In SONA Had Us Cheering
- What Real Entrepreneurs Do When They Hear The Word ‘No’
- Joe Public United Shareholders On The Art Of Zigging When Others Zag
- Beauty Of Failure: The Art Of Embracing Rejection
Start-up Industry Specific3 months ago
How Do I Start A Transport Or Logistics Business?
Upstarts3 months ago
10 Young Entrepreneurs Under 30 Share Their Start-Up Secrets
Business Plan Advice3 months ago
Writing a Business Plan May Not Be Your Idea Of Fun, But It Forces You To Build These 4 Crucial Habits
Company Posts1 month ago
Enhance Your Entrepreneurial Flair With An Online Postgraduate Diploma From The University Of Pretoria