Competition!! What if they do it bigger than me? Will they do it better than me? What if they crush me? Crap!!
Discussing with small businesses and startup entrepreneur formulating business plans, we find that startups often wish that they should not have any competition. Businesses usually are thinking that with zero competition, the entire market for their product or service will be theirs.
When building a Startup you need to know that you will always have a competition with another venture in the market.
There is no way that you wouldn’t have anyone with alike ideas. We all humans we tend to copy each other.
If you did not have competition, that might not be a good thing. Do you think that you are the only to think of that sparkling idea? Think twice. Anything which is worth doing has a form of it around already. The more competition, the more opportunity.
You need to learn what type of competition you working upon.
Types of competitions:
- Indirect competition – Indirect competitors are competitors that might be providing something similar to your product and targeting the similar niche market just in a delusional form.
- Direct competition – Direct competition is competitors who target the same type of customers and work on almost the same idea or want to accomplish the same business.
Once you notice that all figured out and now its time to buckle down to the subsets of the competition.
- Actual competition – Actual competition is the competition of business that is currently in the market with you.
- Potential competition – Potential competition is a competition where the businesses to come. You still need to worry about them because they can swipe you out of your place.
Here are some reasons why competition is good for your startup:
Validation Of Your Business
As far as it’s not another copycat startup, a competitive and crowded marketplace is evidence that the startup’s business has adequate demand. Beginning a niche segment will not certainly give sufficient returns or growth possibilities. While a startup can start with a niche product, it must assure that there is ample potential in the market to make the business viable.
Allows You To Learn From Other’s Mistakes
Closely observing the competition will throw up a lot of information on how to perform and operate better. It acts as a standard to measure one’s own accomplishments and performances. This is worthy of learning for growing startups. Also, it helps you to secure knotholes in your own business in contrast with the competition.
Limits Complacency From Setting In
To startups flush with funds, success looks easy. However, with competition picking up close at the heels, the startup is compelled to step out from its comfort zone to stay advanced. This involves taking a close look at its products or services and looking at out of the box resolutions to excel the competition. It also drives the startup to increase its efforts to push into new consumer segments and markets.
The immediate threat of a competitor beating you is enough to keep you on your toes. And it concentrates on innovation, so you can lead the market. The innovation of products or services is carried out of this challenge. A startup constantly aims to create better products and services in such a situation.
New And Mutually Beneficial Alliances
Sometimes competition rises up new opportunities within competitors who can form alignment in terms of technology, Research & Development, cross-promote one another’s products to excel the other contenders in the market, etc. These are the prime territories for future alliances and acquisitions.
Rooms Focus On Consumer Satisfaction
Even large companies with a monopoly over a product or industry require to constantly evolve to stay out new players from taking their market share. In such a case, startups are made to offer solution and services which the very nature of giants limits them from offering. This drives to disrupting pricing structure, personalization of service and conquers the gap between organizations and customer synergy.
It has been remarked that startups which jumped into crowded markets had a higher probability of abandoning in the first year, but if they sustained, they had a very exceptional probability of being able to survive in the long run.
Many startups don’t fail to the competition, simply because they lose to fight. Competition only advances you up the game and forces you to keep growing greater at what you do lest you let the spirit of supremacy get the better of you.
Operating a business is truly just a matter of running with the flow and creating value. Make more value then other businesses and you will be most admired no matter if you are new or old.