If you don’t have competition, you don’t have a market. Often we run into entrepreneurs who tell us they have no competition. Comments like “we do it so different than others that we don’t consider them competition.” This may be possible, you are the only company that does it this way or your product is the first to market with something. Without competition, you have no one to compare your offerings to.
Know your competition as well as you know yourself. Get to know their personality. How do they sell? Are they reactive? Are they the market leader? Do they consider you a competitor? Who else is a competitor? When you can answer these questions then you will be prepared to compete.
Look for uniqueness and how that translates to value. Make this so important that customers would not consider buying something else. Your product will always have its USP’s, sometimes these fit into a particular market sector. Use these when choosing a market and make them a “have to have” for your prospect.
It sounds simple, but a sales strategy should be geared to win all of the time on your chosen market, most of the time in a second market and some of the time in a third market can be very effective. If your competition comes after you in your primary market, they will expend resources going after deals with low probability of winning. At times like these you can learn a tremendous amount about your competition because they are working extra hard to try and get this business.
Your competition will also be important in determining the value of your company. Value is based on performance and market size. Multiple competitors in a growing market create growth and excitement. When one exits it starts to establish value.
Treat your competition with respect; they help you build your market. If they market well, you will get in more deals, learn when you can win and you will grow. Your competition will help you determine what markets you will serve. Know them well, learn to compete but remember they are essential to success.
