So many business owners worry about their competition. You’re looking for those businesses who sell similar products or services and target the same audience. You consider their strategies, analyze their tactics, and try to differentiate yourself from them. But have you ever stopped to ask if these are really your true competitors? According to Jason Fried, founder of 37 Signals, you could be competing with yourself in most cases.
Let’s take a closer look at why you might be better served by looking inward instead of outward when it comes to competition.
Are You Profitable?
One of the first questions you should ask yourself when it comes to competition is whether or not you are profitable. It doesn’t matter if your revenue is higher than that of your closest competitors — if your expenses are also higher, you could be losing money. Take a close look at your financials and make sure you are making a healthy profit. If you’re not, that’s your competition right there. Your goal should be to optimize your finances, reduce expenses and increase your profits.
Are You Hiring the Right Team?
Another area you might want to examine is your hiring. Are you hiring the right people? Are they passionate about your business and committed to its success? If not, this could be where your main competition lies. Your team is the lifeblood of your business, and their expertise and passion can make or break it. So, focus on building a team that shares your vision and is willing to work hard to achieve your goals.
Are Your Customers Happy?
One of the most important indicators of who your true competition is can be found in your customer satisfaction levels. It doesn’t matter how far ahead of your competitors you are in terms of revenue or market share if your customers are not happy. You need to make sure that you are providing excellent customer service, that your products or services meet their needs, and that you are providing an overall good customer experience. If your competitors are doing this better than you are, then they are your real competition.
Are You Spending More Time Being Happy, or Less Time?
Finally, consider how much of your time and resources are being spent on making yourself and your team happy? Are you providing opportunities for growth and development, creating a positive work environment, and investing in the right technology? If you’re not taking care of these things, you could be your own worst enemy. Make sure that your team is happy and productive, and that you are not neglecting the factors that contribute to overall success.
Knowing who your competition really is can be a complicated process. It requires a willingness to step back and examine your business objectively, and to identify areas where you might be falling short. However, by doing so, you can gain valuable insight into what you need to change in order to make your business more successful, profitable, and ultimately more competitive. Remember, in most cases, your competition is not who you think it is; it could be you and your own choices that are standing in the way of your success. So, take a closer look at your business, make the necessary changes, and watch your success soar.
Ramon is an in-demand small business expert, who has started 5 companies and sold 3 companies. He’s the publisher of ZoneofGenius.com and BWCDaly.com. Ramon is a motivational keynote speaker and event host. Check out his latest book, “Celebrity CEO”, all about personal branding for entrepreneurs and small business owners. Get help from Ramon for your business at CelebrityCEO.com/coaching . Learn more about Ramon at RamonRay.com