Why Competition is a Good Thing in Business
When you think of the word “competition”, what do you think? Perhaps you think of words including “difficult”, “challenge”, or “better”. How do you feel when you hear the word? Maybe you feel slightly anxious, unnerved, or perhaps you feel energized and ready to win. Competition in the world of business exists for more reasons than simply to allow you fewer leads and to split your potential income with others. In fact, there are many reasons why competition is a good thing in business. Seriously! Read on to see our top reasons and how you, too, can change your view on competition and become better because of it.
1. Competition = Ability to Charge More
I know what you’re thinking, “How is that even possible?” With so many companies slashing prices to so-called “compete”, you’d think that more competition would mean you’d have to offer more discounts or charge less. In fact, however, more competition often means your industry is growing and become more in-demand, therefore allowing you to inch up your prices along with your competitors. Sure, you’ll probably want to offer a great deal every once in a while, but overall more competition will help you justify your rates and allow you to be “better” than someone. It’s a lot more difficult to justify your services and rates to a client when you’re the only one offering them.
2. Competition = Networking Opportunities
Your competitors can’t take every project that comes their way, and they’ll most likely look at their network and suggest an alternative to a prospective client when they simply can’t take them on. This could mean you! Get out to networking events and reach out to your competition. A healthy industry and possible connections is a good thing in anyone’s eyes. As they say, keep your friends close but keep your enemies closer – or at least your direct competitors.
3. Competition = Collaboration
Some events are simply too large for a single business to take on. Opportunities may arise that will allow you to collaborate with others in your field, and possibly even merge your businesses down the road – giving you a large slice of the market and the ability to take on more and larger projects. Never look at your business competition as a negative, because it really isn’t. In fact, having competition can be a huge positive – just look at all the major corporations that have merged or been acquired by other companies. Your big pay day could come sooner than you expect.
4. Competition = Motivation
When you’re in a highly competitive market place, you’ll need to remain focused and driven. Competition can be very motivating! You’ll want to stay ahead of your competitors and offer the latest and greatest, so check out what your competition is doing often and, once again, get out to networking events. You’ll be surprised what you can learn about a company’s current projects over a refreshment!
Now, we’d like to hear from you. What’s your main concern with having competition? Let us know so we can provide some suggestions for how to overcome them in a comment below!