Is competition good for small businesses?
Many people when running a business think it’s a good idea to try and avoid competition within the market.
Now everyone has their own opinion, it really depends on the type of business you are running and the people that you work with. It doesn’t work for everyone. BUT here are a few reasons why a bit of market competition is good for a small business.
1. Competition gives you time to improve your customer service
When your business is booming in sales and in profits, there simply isn’t enough time to evaluate every customer but when there’s market competition, you’ll give time and resources to appreciate every customer.
2. Competition forces you to capitalize on your strength and weaknesses
If there’s no competition, you won’t create time to study your strength and weaknesses. Stiff competition forces you to identify and study your strengths and weaknesses; this will enable you to work on your weaknesses and push hard with your strengths.
3. Competition brings out the best in you!
Competition keeps you on your toes and provides valuable strategies to keep your product or service fresh. It also keeps you up and doing, and provides you with valuable market insights!
4. Competition makes you work faster and smarter
When there’s competition, you must always be on your toes and always on the go! Failing to do this will give an opportunity to your competitors to push you out of the market
5. Competition forces you to devise better ways to add value to your business
When you have competitors in your market place, it puts your brain to work and forces you to devise better strategies to add value to your business.
6. Competition opens your mind to new ideas
When there’s no competition, you can’t be motivated to go the extra-mile in pleasing your customers; but if you keep your eyes open to ideas, you can learn a lot from your competitor’s strength and weaknesses and use it then to improve your product or service.
You must be able to draw strategies and make use of what your competitors have in place to adjust your own business plans.
7. Competition encourages your employees
In a market full of competitors, there’s always something new to learn; things like, how to handle customers and how to handle situations and gain control of market competition when you have more customers than you can handle.