Competitors could be any business (whether real-world, clicks-and-mortar, or Web-only) selling the same products or services in or into your “area” and aimed at the same target group you will be selling to.
- Your “area” is the geographical region that your real-world business will draw its customers from, plus wherever you believe your Web site may pull buyers from। What are the competitors’ strengths – and their weaknesses?
When you know them and how they operate in every department, you can compete successfully.
But fail to know your enemy, focus only on their weaknesses and ignore their strengths, and you will lose the war.
Learn everything you can about the businesses you will be competing with। Start a file on competitors and near-competitors and record their details –
- Advertising and promotional strategies
- Pricing policies
- How they serve their customers
- How they make it easier for people to do business with them
- How they position themselves
- What they are offering their customers
- Where they draw their customers from
You’ll want to learn from others – but don’t copy everything they’re doing. Find an angle, a better way, an improvement. Be yourself.
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In your research, be careful not to restrict yourself only to the “real” world। Pay particular attention to the Internet -
It has increased the area where business is done from a local to a regional, to a national, and an international, arena.
Which means “outsiders” can now compete with you in your market without needing a physical location to do so.
Use the Internet to research other sites - especially, but not only, the competition: There’s an amazing amount of information online about markets, opportunities, and a lot of other important thing .
- A side benefit when you do the research and look closely - you’ll begin to see the un-served and under-served gaps in the market where you can cash in
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Set Yourself Apart
A crucial part of your research is to identify areas where you can attain an edge over your competitors (a competitive advantage).
This involves understanding what your competitors are providing so that you can differentiate yourself from them - by offering something they don’t, and which your target customers will value.
We all know that you need to sell great products, provide great service। But you’re probably old enough to be told the truth -
- That’s not enough to build a seriously profitable business।
In reality, there are very few products or services that are not being offered by others. It is difficult today to find anything that is completely unique. And most goods of the same type do more or less the same things.
Unless you’re offering something new and different, the only way you’ll build your business is by taking customers from other businesses.
- And to do that you must give the customers something extra (“added value”) that will drive them into your business.
Find a way to set yourself apart in a meaningful way - do something better and different so that people will choose to do business with you, not with the other businesses that are doing or offering pretty much what you are doing and offering.
The question you need to answer is -
“Since people have a choice of others who can provide what they want, why should they choose me over the others?”
Your customers must believe that they will get some particular benefit if they deal with you instead of anyone else. Otherwise, there’s no reason for them to buy from - or return to - you.
Maybe you offer -
- On-going service and support
- Replacements
- Longer guarantees
- Easier access
- Faster delivery
- Choice of ordering mechanism – retail shop, 0800 number, online store
- Customization
- Whatever
Decide the added value that your target customers will get when they deal with you instead of anyone else and communicate that benefit to your targets clearly and consistently -
Provide them with a reason to buy from you and they will buy from you, and they will return to and buy from you again।
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3) Know your business
Build your knowledge of the field you’re getting into।
a) Keep up with what’s going on, and what the trends are, in your industry. When you know what’s happening in the marketplace you can make informed decisions and create intelligent plans of action for your venture.
b) Learn everything you can about the products/services you will be offering. Bone up on what else is on the market that’s comparable, and the pluses and minuses of each.
Why? Simple:
You want to become known as an expert, because people rely on experts.
Customers value solid information that helps them understand what they need to, and why what you’re offering will satisfy their needs. When you know what you’re talking about, people will listen.
Experts give advice: They’re not salespersons, and they don’t have to resort to hype or hard sell. They discuss things and make recommendations…
People trust and follow what they say - and they buy from them, and/or use their services.
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Let Them Know
To multiply the number of sales you make and make them twice as easily, become an expert। NOTHING will make you job of attracting customers and clients easier -
Satisfied customers who see that you know what you’re doing and understand their needs will spread the word about your business like wildfire. And nothing beats word of mouth।
- You must work hard at establishing yourself and then making sure that people know of your expertise -
#Write articles for publications
#Give interviews
#Hold seminars
#Teach classes on the effective use of whatever you’re offering.
Your expertise will also be another important factor in differentiating “you” from “the others.”
- Incidentally - no matter what real-world business you’re setting up, you must have a Web site
One reason is because you will be using it to promote your expertise. Your car site runs articles about “How to Choose the Right Car for the Five-Member Family,” your real estate site covers “How to Get the Best Interest Rates.” You get the picture.
