There are over 30 million small businesses in the United States employing over 58 million people. If you’re a budding entrepreneur, you know that no matter your business, there’s competition.
The good news? You’re not competing with every business out there, but only a small fraction. But if you’re an entrepreneur, there are a few things you need to know when it comes to business competition.
Want to get ahead with your business? Read on for 5 types of business competition you need to understand.
There’s More than One Type of Business Competition
When it comes to your business, you’re not competing based on the product only. If you sell widgets, you need more than the best widget. You need to beat out your competitors in every facet of the business.
Take a look at your business competition in these five areas:
- Intangible elements
- Products and services
- Cost and price
- Brand recognition
Master these five areas and blow away your business competitors.
1. Intangible Elements
The intangible elements of your business often come down to excellent customer service. Do your agents go above and beyond when it comes to customer satisfaction?
The intangibles make a surprising difference when it comes to customer preference. Winning a Stevie Award is a plus when it comes to your marketing campaigns, and it sets you ahead of the competition.
2. Products and Services
Find out what features your direct competitors offer on their products or services. Are your products or services as good? Do they offer comparable features?
If the quality of your product or service isn’t as good as your direct competitors, you’ve got a problem. Did you lose out on your most recent request for proposal (RFP) to a direct competitor? It’s time to call an expert like Weber Associates consulting.
3. Cost and Price
Producing a product at a lower unit cost translates into a significant advantage. The actual price of your product is in direct competition with someone selling the same product. If your unit cost is lower, your profit margin is higher.
If you offer a product that has a significant advantage over your direct competitor, it’s possible you can charge a premium price. But if the product is the same, customers will usually choose the cheaper of the two.
This is also where the intangible elements come into play. If the product is the same and your service is superior, you can charge a little more.
4. Brand Recognition
The more customers recognize your brand, the more they’ll choose your product. Customers like brands they know and trust. Establish trust with your customers early and often.
Know your “why” and your mission and carry that across your collateral marketing materials. People are loyal to brands they know and trust.
Create a trusted salesforce that understands the company mission. A knowledgeable good sales force is a competitive advantage.
Know Your Business Competition
Knowing your business competition gives you a huge advantage. Competition isn’t only about the product or service you sell. You’re competing on many levels in the business world.
From the intangible elements of customer service down to a well-trained salesforce, you need strength across the board.
Looking for more business and technology advice? Keep reading the blog!