One thing that is certain in life is competition.
We live, we struggle, we choose to survive all because we compete, It whats makes life itself worth living.
Imagine if we all came to life all grown up and blessed with all we had, life would be very boring and there would be no ground to cover.
The reason why a newborn baby is born empty is to foster competition while growing up, he or she has to learn to walk, learn to go to school, and eventually learn how to become successful.
The principles attached to the competition are also applied to every area of life and we can see it applied in sports, Fashion, workspace and what we eventually would be talking about today which is business.
I must tell you, the business world is not an easy one especially when you intend to start one; it even gets more worst when you are coming from a cooperate background when you were being paid wages or salaries.
Embarking on business for most people like this becomes a challenging task; there are no paychecks and you simply have to wait patiently for months and eventually even years.
Most times people in this category are eventually forced to quit and return to their good and secure small lives.
In an attempt to do a little research as to why businesses fail to competitors I was able to discover some very few things about people that fail in business.
And one of the very big reason is that they are not persistent enough, they simply give up early.
When starting a business give it a five-year success plan.
You can either choose to do it part-time or full time as the case may be.
No business is carefully pushed over five years that does not achieve a milestone even if that is not where you want it to be then.
Let me tell you one secret here before going any deeper, and that secret is that every successful business is built on trust.
People will not do business with you if they do not trust what you do or what you are trying to offer.
More Deeper Insight.
I am going to be shedding more light on this topic using a case study that I heard on TV from a popular Nigerian comedian named Teju Baby Face.
He is an indigenous Comedian, actor, and TV host, you can find him on his website at Tejubabyface.org.
A very amazing and a wonderful guy.
One day I was watching his shows on TV and he said something that changed my life forever and this made me write this blog post.
What he said was not related to beating competitors in business but I got a deeper insight into it.
He gave an insight into three categories of businesses which are.
- 80% category.
- 15& category
- 5% category.
For a deeper understanding of my readers, I am going to be breaking this into a deeper and brighter outfit so that you can digest and understand better.
1. 80% category (Amateur).
For the benefits of readers, I am going to call this business level the amateur.
This level of business is where everyone starts from, so you are starting a new business today you are at this level.
Most people have been in business for more than 5 years and they are still at this level.
It just depends on their level of awareness as to when to scale up.
Most times most business owners are not even aware that they are at this level.
This does not only apply to those in business only but those of you who have craft or handiworks, like web designers, tailors, and so on.
Now I am going to break this down by going further so that you can further understand.
If you experience the below-mentioned situation then you are definitely in this condition.
1. Low Customer patronage
For example, as a tailor at this level when a customer approaches your shop and you charge too high the customer is bound to negotiate your price then if you can’t conclude then the customer is displeased and moves on to another person doing what you are doing.
2. Your business has only one source of income.
If your business makes money through only one source of income then you are in this category.
More reason why I recommend you start a business that is related to your passion.
Don’t start a business because you think it is doing well.
If you are into real estate, make sure you can know and understand real estate very well, this applies to all business owners too.
As a web developer and a digital marketing expert, I can defend my business anytime any day.
If your business makes money from only one source then you are bound to suffer from your competitors.
Look at big brands, like Amazon, Mary Kay, and others; their businesses make money through various ways for them.
3. You have only one marketing channel.
The trend in social media is becoming very high now and every dick and harry is on social media promoting their businesses.
This is a very good way to promote business, but social media is just one out of many ways that can be utilized for the sole purpose of marketing.
So, if your business relies solely on the use of social media for marketing then you are in the 80% category.
Every business must pass through this stage, but the fact is that so many businesses stay too much at this level.
At least your business should move up to the next stage after two years and at most five years.
2. 15% category ( Professional).
When you are in this category as a business owner, you tend to relax as if all is well.
But I tell you all is not well because it is a delicate position.
So many businesses have struggled their way up to this level and eventually dropped down to the amateur category.
At this point or level of your business, you are likely to experience a very little boom in your surroundings only.
People around will not go far to get what they want because they know you are there.
You are likely to get more referrals from people and you don’t need to spend more on advertising as you used to do again.
Your business will experience a very little boom and you might be tempted to relax and assume all is well.
If you are not very careful in this stage you will fall off the ladder.
Businesses at this level never leave the shores of their country.
The difference between these levels is just the level of trust your business has acquired over time.
As mentioned earlier, the secret of success in any business is trust and nothing more.
3. 5% category(veteran).
This level of business is where every business is aspiring to be and sadly enough only very few people are there.
At this point, Your business earns from so many sources of income, You do not need to spend on advertising again and your business becomes a global brand.
Examples of brands in the category are Facebook, Amazon, Jumia, Mary Kay, and native brands like House of Tara.
At this point your business becomes organic, no one will argue about your pricing.
Top brands and celebrities like Alibaba, Sylvester Stallion fall; Top fashion brands like Paul Smith, Dolce and Gabbana; Top food brands like KFC, TFC, and Mc Donalds.
There are so many brands in the world, but these guys are exceptional.
Let’s say you have a wedding ceremony or an event and you want to call Alibaba, then you know that you cannot argue his pricing, for those of you who do not know Alibaba, he is a comedian based in Nigeria.
The same goes for the likes of Sylvester Stallion, there are so many actors more younger and humble than him, but when you want to include him in your movie as a director then you know that you are ready.
This goes for so many brands that fall into this category.
How To Overcome Your Competitors In Business.
The billion-dollar question here is how do I beat my competitors in business?
The answer is very simple, You have to build more trust and offer more interesting services and valuable services.
How do you then build your brand or business trust?
Competition is healthy for all kinds of businesses and one of the main reason behind the competition is to help a business to build better brands.
1. Know your customers.
Before every thinking of starting a business, the very first thing to do is to know your customers, take for example lets assume a new brand is into video games production and wants to compete with already established brands such as PlayStation and X-box 360, such a brand should understand that their customers are between children, Teenagers and Youths, if such a brand should target married people, they are likely to go out of business very soon.
By knowing and understanding your customers, you can build a relationship between then and your company and also extend customer lifecycle even after a purchase has been made.
2. Understand your competitors.
The next thing every new and small business needs to understand is their competitors.
One of the ways to do this is to take a hard look at things your competitor does, this can be from the way their product is designed, the distribution chain, and maybe their marketing pattern.
For example, let’s say your competitors are targetting high-income class persons in the market, you can create the same product, offer the same service but this time make it affordable to the middle-income earners.
3. Target New markets.
When you have one market oversaturated, one of the very wise and important things to do is to expand to a new market.
There are possible ways to do this, and some of them include creating and targeting a new product to a different age range, you can also decide to explore a different location that is very far beyond your present country.
4. Look After Your Existing Customers.
Most companies do not care about existing customers, and all they do is just forget you after a successful purchase has been made.
Your customers have the right to be cared for, and this can come to inform of seasonal reward and follow up messages on all medium such as telephones, email and so on.
5. Keep Innovating.
Innovation drives profit in every business when your business is not innovative then competition would surely overrun you.
When Coca Cola started, it used to be sold in drums but someone came up with an innovation to bottle it, and that singular Idea made it expand to the whole world, the same goes for the computer, nobody though computer could be accessible to a common man and even available in every home, People Like Steve Jobs made this happen and we can see today that its a different story.
6. Look after your Team.
One of the very last things to do is to look after your team, don’t be too bossy not to exercise patience and understand that they are also human beings, they can make mistakes, they may not meet deadlines, not everyone would be like a Steve Jobs kind of CEO, sometimes the best CEO’s are usually the calm and understanding ones.
Make sure to set goals that would overwhelm your team, try to keep things as simple as possible, another very important thing to consider is how you pay them.
Make sure that they are sorted out in due time.
7. Explore many other marketing channels.
Marketing is very essential to every business and every business owner should take the issue of marketing very seriously, to be able to beat competitors in business, every business owner should have more than one marketing channels and here they are.
This is a very common way of building trust in business.
When people like your business then you are likely to get referrals.
That is why I recommend small businesses to ignore profit for the first few years in their businesses and focus more on impressing their client.
Your industry might be overwhelmed but you can defeat that offering cheap and affordable service.
Make sure to always brand yourself very well.
Ask for feedback and improve on them, do customer follow up and don’t give up.
You can keep your daily Job as not to feel discouraged by little profits.
Give it time and you will not regret, don’t raise your prices at any willing time.
Make sure you gather them and build trust.
I know of a guy who presently cut’s my hair, when I first met him, he was in a very bad state; hit barbing salon was made of wood and old thatch leaves.
I was ashamed of allowing him to cut my hair because of the way his shop looked like.
Then I gave him a trial and since then I have not ignored him again.
He talked well with me, and usually waves to me anytime he sees me from afar, very wonderful guy
He simply was very welcoming and a very interesting person; his prices were fair and I must tell you that I usually travelled a very long distance to cut my hair with him.
Now, he has improved the structure of his building and he now has a better place flowing with customers
I simply tell my friends to cut their hairs with him.
With the astonishing rate at which he grew, it is very obvious that he offers a very better service and he understood the principles of starting very small.
Another amazing way to grow your business and beat your competitors is blogging.
Aside from seeking customers in your local surroundings and on social media, you should also seek customers via the search engine.
The way to do this is by blogging.
Putting out content related to your business values can attract high return in investment and even build potential customers.
Blogging shows how wise and very liable for your business.
Prospective customers are going to see you as an expert and always want to consult with you.
This applies to people in health, Fashion and general goods and service-related businesses.
I recommend every business to diversify on the use of social media and spend more time blogging
Starting a blog does not only give you the ability to promote and showcase the value of your business but you also get the chance to make good money.
Here is an article I recommend you read to help you get started with blogging.
To grow your business to the next level, you need to show up.
YouTube gives you the ability to showcase yourself.
As a brand or business, you should endeavour to show up and influence on YouTube.
This section is very important for those in the media business like MC, actors, and those in the service-based business like cosmetics.
Most people prefer Instagram, but Instagram does not pay you.
You can get paid via YouTube.
4. Email marketing.
Email marketing is a very good way to build a relationship with your desired audience and prospective customers.
People in your email list are well-targeted people and they are more likely to engage your business even more than people you get via paid ads.
Here is an article I recommend you read to help you get started with email marketing.
- Why GetResponse Is Best For Your Email Marketing Campaign In 2020
- How To Grow Your Email Marketing List In 2020
Taking your business to the next level requires a great deal of hard work.
Give your business a space of three years coupled with dedication and hard work and I am sure that you will get there in little or no time.
Ignore the pressure on getting profit at the first and focus on building a huge customer base.
Lastly, be sure not to devalue your business to please customers.
Make sure you don’t devalue the business for your competitors so that they don’t tag you a failure in business.
Let your customers know that you are offering a free and cheap service for the meantime and you will still go back to the normal price.
Be sure not to bend principles, in the first years in business you will get some really bad customers coupled with the very good ones and they might tempt you to devalue your business kindly ignore them and wait for the right customers to come.