Imagine you are new to business ownership and you are considering buying a new venture. Which one of these two businesses would you buy? The first is selling a new concept totally new to the market and where no competitors exist. The second is selling a version of a product that has been around for years and where dozens of competitors are in the market.
Your first reaction is likely to be to buy the new concept business, because you have been told by people (including me to a degree) that being unique is good and it will be easier to sell and keep a high price if no competitors are around to bug you. But you would be wrong.
The problem with the new concept business is, at least for someone new to business ownership, you need to spend a long time and a lot of money EDUCATING the market about your new concept before they are ready to buy. This is fine if you have deep pockets and can take a longer term view of ROI, but for most small business owners newer to the game, you need a quick payback and that will more likely come from a tried-and-try product or service. The key is to look for or develop a COMPARATIVE advantage from your competitors so that you can carve out a niche in the already developed pool of demand that exists. Better, faster, cheaper, more colours, less waste or whatever feature that will set you apart.
So don’t fear competitors. Embrace them. Hang out with them and learn their weaknesses and how you can be better. It is likely that if they have been around for a while they will have become fat and lazy. You will be able to take a proven idea and do it better than many of them, therefore building your business quicker than they can react to and building a successful enterprise for your future.
Andy Burrows
Business Builder
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