When starting a new business or entrepreneurial endeavor, you’re probably looking for a space, a niche, a market where you’re the only one. The picture you have in your head is some sort of desert where you’re the only one selling water. While that makes sense, here’s some advice that tells you to do the exact opposite. It’s backed up by a lot of people, and is something you should look into before heading off to the Sahara.
3 Ways Competition Helps
First- competition is proof that a market is profitable.
The problem with the example above- about going to the desert.. is that it’s probably… deserted. Sure you’ll convert 100% of the market.. but why set up shop in a place where there are only a couple of people? There are also many markets that are crowded but can’t sell. Many bloggers online for example have found that it’s easy to drive traffic to an enternainment-oriented niche, but it’s very hard to convert. Why? Because they’re there to have fun. They’re not there to solve an itching need or problem. Pro-blogger David Risley says you have to find a way to take people from where they are to where they want to go, with respect to a certain need or want they have. When you see advertising on a Google search term you just queried, it’s evidence to some degree that there must be some money there.
Second, competition brings the possibilities of alliances.
How ideal is a monopoly? Sure you have total control over the price, and there’s no one around to steal customers from you. But do you have the capacity to serve the entire demand? These days just getting the word out on a new business is tough. You could spend millions on a TVC, and still have to cross your fingers because people are so tired of being interrupted. You could spend on online advertising and deal with the fact that click-through percentages are at an all-time-low. The only resource left, really- is the trust and authority that your own competition has. Turn them into an ally. Use them as a channel. Cross promote your products and services. Think of a way to serve them, and then get them to serve you. Together you can corner your market (if you’re still coming from the monopoly perspective).. or better, you can serve them in a greater way.
Third, your competition helps you with your own positioning.
There are so many ways to skin the cat. If you’re doing too many things you probably suck at most or all of them. The idea is to focus. Yesterday we talked about focusing on a target market- to target so precisely that you cannot miss. Similarly you have to focus your endeavors- to service that target so well that you will be the go-to-guy for something. When people encounter the need for that “something” they think of you. And then you can always grow from there. So how do you know what to focus on? Surveying the competition helps. What are they doing well? What are they not doing well? What can you do better? And because you’ll probably focus on something the competition has neglected, you’ve effectively turned them from competition into a complementary service. Let me share to you something I’ve learned from an unexpected place…
Lessons from a Board Game
I love playing Monopoly. I grew up playing it, and still play it with my dad and siblings. It’s always a fun, heated, emotional and educational experience. Here’s my mantra when it comes to that game: “He who trades first wins first”. What I noticed is that the first two players to strike a deal together will most likely be the last two standing. Why? Because they reap from their partnership immediately and for a few rounds, milk the rest of the players dry. By the time the others form their own alliances, they one who did it first have accumulated more cash, more property, more opportunity. How does that apply to real business?
Partnerships Don’t Exist in a Vacuum
In real life you need partners. The best place to look? Competition. This is true for: Internet Marketers, Pro Bloggers, People who are looking to take their offline business online. Surveying the competition is as easy as running a Google search on a particular set of keywords. Don’t target an empty desert. When promoting yourself with Social Media, who else is talking about what you’re talking about? Get to know them. Partner. And then focus on what that person is neglecting. Together you can dominate. Refer people to each other. This works offline as well. Team up to conquer a territory.
Small Thinkers Fight over Slices
We’ve been trained in school to see the Market as a pie, and we’re wired to fight over the slices. Didn’t you think perhaps that you can grow that pie? You can grow your market! Increase awareness, demand, service level! Make people think of ways to use that thing you’re selling that haven’t been done before! Don’t fight with your competition. Ally with them to find a way to grow your market. Together you can be assured of a piece in a bigger pie. Decide on which thing you want to focus on. Then refer customers to each other when they want what the other guy is offering. Don’t be a small thinker. Think instead of the possibilities in your market. Where do you want to take it?
Remember, the world is getting smaller and more crowded. “He who trades first wins first.” Begin to see your competition as blessings in disguise.
