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Why competition will help your business grow

Why competition will help your business grow

By default, many business owners resent the idea of competition. After all, who wants to have their customers, and their best ideas, poached by strangers? The reality is that healthy competition in business is actually a good thing and a great catalyst for growth. Here’s why.

 

1. It’s a great source of motivation

Knowing that your competitors are continually working to grow their businesses can be enough to get you out of bed every morning with a fighting attitude. Having your employees feel the same way – by engaging them in the success of the business as a whole – will help to banish complacency from every part of your business.

2. It helps generate new ideas

In a knowledge economy, the company with the best tactics for delighting its customers is the one that will prevail. So, by necessity, there will also be competition for smart individuals within your industry who can help drive this innovation. As you find better ways to solve customers’ problems, your reputation (and profits) will improve.

3. It makes you continue to focus on customers’ needs

Imagine if customers had no choice but to buy from you. As long as the money rolls in, how motivated would you be to keep them happy? In the real world, if you can’t do this, they will simply go to your competitors. But if you do, you’ll have their loyalty, which means a lower advertising spend and more profit per sale.

4. It’s a sign of healthy demand

Picture taking your stall to a market square where there are no people, just a tumbleweed or two. Your product might be fantastic, but if there’s no demand, your business is doomed. Competition is a clear sign that people want what you’re selling. Much of your job is simply finding a way to market it better than your competitors.

5. It’s a valuable learning experience

Keeping an eye on how competitors run their businesses can be a great way to learn how to improve yours. If they are thriving, you can draw inspiration from how they go about things. That being said, be careful not to copy their branding; it’s probably trademarked.

6. It can make you an expert

To survive in a crowded marketplace, you’ll need to be able to stand out in a powerful and appealing way. Demonstrating that you are an expert in your field and a strong advocate for your niche is a sure-fire way to attract both attention and sales.

Quite simply, as you continue to focus on customers’ needs, your customer base will grow in response. And so, in turn, will your company. Let’s be honest: competition can sometimes be frustrating. But in the long run, it’s a positive thing – for your business as well as your sense of achievement.

Whatever you do in response to your competitors, don’t let yourself be scared into avoiding risks altogether. Find out why stagnation is a risk in itself.

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