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Should You Consider the Competition When Starting a New Business?

By Susan

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  • #5010
    Susan
    Participant

    For many new and experienced entrepreneurs, it can be difficult not to run with a new business idea as soon as it pops into our heads. One of the biggest reasons for this is because we want to be sure that we are the first to market. But, rather than revving up the engine too quickly, it can be extremely beneficial for you to take a step back, and research whether or not there are other companies that may already be producing something similar to your intended product or service.

    What you may find is that there is already at least some competition out there. But even so, should that stop you, or should you still proceed in light of these other competitors?

    The answer is, that depends.

    When moving forward with a new business idea, the reality is that having some competition already in the market place can actually be a positive thing. One key reason for this is that it shows that there is at least some amount of interest for that product or service in the industry. (Alternatively, if there is absolutely not competition out there at all, it could mean that others have already tried the idea, but it didn’t work out).

    There are actually several ways in which competition can help your business to succeed. For example, having other companies offering the product or service means that there is already at least some amount interest in the market place. It can also force you to differentiate and carve out a specific niche for your business. In addition, depending on just exactly what the competition is offering, you may even find that you can partner with a competitor in order to expand your reach – and ultimately create a win-win for all.

    What industry is your new business in? Prior to getting started, did you find that you had a little – or a lot – of competition, and if so, what was your strategy for moving forward?

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    • #5014
      ursellb
      Participant
      • Total Post: 8
      Points: 0

      I’m in the buying and selling business.
      Well I know that there is a lot of competition out there. My strategy is
      to go to where I know I will make money. And I am determined to secceed.

      • #5080
        Matthew King
        Keymaster
        • Total Post: 110
        Points: 1,740

        What are some of your competitors doing? Are they partnered with a house repair company or person? Do they use social media?

    • #5015
      Ongunyo
      Participant
      • Total Post: 2
      Points: 0

      Yes you should. Knowing your environment when starting a business is important. It makes you know how to thrive especially in places with stiff completion or rather several business doing one business. It makes you know what you should improve on or rather a new thing to come up with to survive in a competitive environment.

    • #5022
      Matthew King
      Keymaster
      • Total Post: 110
      Points: 1,740

      In the two business arenas I choose to carve a niche in I honestly had an vastly different competition amounts. In the 1st business, there were already larger types of of the same business but I wanted to offer a special niche on what was already out there. For that we measured our idea and it was similar enough to what was already laid out as a service but just different enough to entice a new type of customer! For the 2nd business, it was retail matched with veteran support, while there are a few out that do this the demand honestly wasn’t high enough now that I look back at it. I also didn’t have the support I had with the first business or even my third business. I learned a lot during this and ended up closing the second one due to debt and just not being an effective business model. However, about six months later that enabled me to launch my 3rd and final business at a much more researched rate, competition is honestly everywhere, but each with their own unique twist so it again allowed me to fit in with my own niche of customers. Another standing matter is the need for coders, designers, developers, and business help is always growing!

    • #5037
      Destiny Valid
      Participant
      • Total Post: 4
      Points: 0

      I’m in the business of working in a garage,repairing all types of motor vehicles.
      I know there is a lot of competition out there but still there are people buying cars.

      • #5081
        Matthew King
        Keymaster
        • Total Post: 110
        Points: 1,740

        Yes, there are tons of competition out there. What are some ways you are different than the competition. Do you service customers cars at their homes, have an place they go to? What about pricing or the type of customer marketing?

    • #5119
      Destiny Valid
      Participant
      • Total Post: 4
      Points: 0

      We are different from our competitors as we service customer’s cars at their comfort of their homes at an affordable price.
      Our marketing strategy is through social media such as facebook.

      • #5122
        Matthew King
        Keymaster
        • Total Post: 110
        Points: 1,740

        That’s awesome! So do you have a service van or a company car that you use to get from one customer’s location to the other? Are you using facebook ads or just organically outreaching through social media (commenting on posts stuff like that)? Just so we know, I run a web design business and an insurance business. So you know we aren’t in the same competition. I am just curious to learn more about your story 😀

    • #5290
      James Mugo
      Participant
      • Total Post: 3
      Points: 27

      Yes you should so as to know how to gain a competitive edge in the market.

       

      • #5302
        Matthew King
        Keymaster
        • Total Post: 110
        Points: 1,740

        What are some of the things you considered for your business, specifically for your business?

    • #5309
      meshack
      Participant
      • Total Post: 5
      Points: 41

      When starting a business the first thing you need to consider is the necessity of your product or service. If there isn’t a need for your product, how will you attract consumers?
      You need to find a way of filling the gaps, identifying any issues in the market and then offering a solution. What is your unique selling point (USP)? Ask yourself, does the problem you want to fix actually exist?

      People get so hung up on inventing something unique, an idea, product or service nobody else is already offering. But there is very little in business that is truly unique. Focus on being better than the competition instead of looking for something new.

      Every business should be customer and market-led. Your prior research should illustrate this. Research is not just useful to know, it’s critical and you should spend a substantial amount of time doing it. It is only by fully researching your market and customers that you understand their needs and how to differentiate your offering. Analysing your audience, identifying your USP and understanding your market are essential.

      When I started my recruitment business Alexander Mann, I decided to only charge customers if we were successful in making a placement. I hired the best sales people and focused the business on financial services recruiting. By targeting one sector, I was able to quickly become an expert and set myself apart from the competition. Being a niche market player makes you a leader.

      A USP can be applied to lots of different components of a business including customer satisfaction. Don’t forget the value of customer service. If a customer knows they will receive next-level service compared to your competitor then they are more likely to come to you.

      Emma Watkinson founded SilkFred with her Start Up Loan. The business is an online fashion retail platform, however the difference with this site is that it specifically sells independent and emerging designers. The team handpick designers featured on the website, checking the quality of the items they produce to ensure they meet the same standards.
      By focusing on independent and up and coming designers Emma has ensured her website offers something different to the other fashion retailers in the marketplace. Customers know that when they purchase items from SilkFred they are accessing products they wouldn’t necessarily be able to buy on the high street or from other websites.

      In crowded markets it can be harder to find your USP but with so much competition it is a key component of success. Don’t try to be everything for everyone. Remember to focus on your customer and their needs: by trying to please everyone you often end up pleasing no-one.

      Know your audience, how to target them and put yourself in your customer’s shoes. Once you have defined your USP it is a lot easier to promote your business, stand out from the crowd and disrupt the market.

      • This reply was modified 2 years ago by Matthew King. Reason: Admin Edit
    • #5329
      Reshmika Christopher
      Participant
      • Total Post: 9
      Points: 61

      In economics,”competition is the rivalry among sellers,trying to achieve such goals as increasing profits, market share, and sales volume.I feel it is always good to be a part of a Monopolistic market rather than in a Monopoly.Because,it is always good to have healthy competition which can be a performane booster,thriving the companies to identify unique talents and come up with innovative techniques to boost the sales.

      • #5340
        Matthew King
        Keymaster
        • Total Post: 110
        Points: 1,740

        Can you give a few examples of how you would research your competition in your given market?

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