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?