☑ WHY COMPETITION IS ALWAYS GOOD FOR YOU AND YOUR BUSINESS

Since business is largely about competition an aspiring entrepreneur must learn to be comfortable with it as soon as possible. Indeed, ones’ negative attitude about competition is symptomatic of business immaturity and guaranteed troubles ahead. If you are serious about going in business for yourself, cultivate a healthy attitude about competition.

I recently talked with a young couple who related some useful insights on how not to choose a business. Victor and Minda were hoping to start a business in a booming neighborhood in Muntinlupa. Being inexperienced in business, they thought their ideal enterprise must match two criteria, which they thought wise at the time. The first was that their business should fill a basic need. The second was that their business must have no existing competition to contend with.

While it was easy enough for the couple to find a lot of business ideas that passed the first criterion, finding one that has no existing competition was tough. It was only upon consulting with experienced entrepreneurs that their second criterion was not only unnecessary but unwise.

First off, a lot more money could indeed be made in a business where you are the pioneer. But this will only apply to you if you already have the entrepreneurial maturity to back your brilliant business plan.

Second, even if you managed to successfully introduce to the market your brilliant business idea, (the first-of-its-kind business in the community), who’s to stop your better-experienced and better-financed competitors from imitating your success formula?

Third, and most importantly, the very absence of existing competitors for a particular business actually is an almost sure sign that it is risky business idea. It could very well be a sign that the demand for it does not exist at all!

The couple eventually decided on a bakeshop business not because it has zero competition, or just a few competitors but because they feel it’s the business they can commit for the long haul.

They also surmised realistically that the demand for bakery products is not just stable and big but also growing (as can be confirmed by the number of competing shops in their place). Victor’s marketing background also cames in handy when it comes to charting the bakeshop’s niche marketing strategy.

Lastly, the couple also developed a simple backup plan in case all their planning and projections went askew: move to a better business location.

At any rate, they have factored in the reality of competition to their business equation and have taken creative steps to increase their margin of success.

So much in business depends on factors outside the entrepreneurs control. Sooner or later, however, entrepreneurs who prosper are those who embrace competition and are willing to suffer and grow by it.