Some of the would-be entrepreneurs who I have interacted with look at certain opportunities and drop the idea after doing some ground work. Reason? Somebody is already doing it and is flourishing. I spoke to one of them last week on similar lines and he is the trigger for this post.
When we see competition, we need to put on the glasses of assertiveness and see what we can gain from our competitors. Having them around is a blessing in disguise. I will tell you why.
For starters, you know that there is a market for your idea. So, you don’t have to spend thousands of dollars to find out if a market exists. There you go, you just saved a good portion of your investment. You got some important piece of information that consumers are willing to shell out money for the product/service that is on offer. This is great news. This is just as great as Archimedes shouting Eureka because you know that if you play your cards right, your coffers will start to jingle.
Your potential competitor will give you the opportunity to observe him. He will give you glimpses of his strategy, processes and his operational tactics. This will give you insights into how you can approach the market, or in some cases, how not to go to the market.
The strength in having competition lies in understanding them. Talk to them as a potential customer. Gather as much information as you can. Try and figure out how they source, deliver and control quality. Marketers and salesmen from your competition will be more than happy to boast of their activities in order to close the sale. If you believe that you can obtain further information by becoming your competition’s customer, do it. There will be a cost but worth every cent. There are lots to learn once you are on the inside.
You can save plenty through your competitors. This portion of the money – which otherwise would have been spent on market research can be diverted towards product development and fine tuning the services you offer.
Are you one of them who dropped the idea of starting your own business fearing competition? If yes, it’s not too late. Start over!