Every business will likely have to deal with competition at some point. It can be tempting to jump in and react immediately by slashing prices, bumping up marketing, or creating new products, but these things cost time and money. You could end up damaging a business that is already doing well. So how does one “compete” in the business world? All of those things listed are great ideas, but as Yogi said:
“You can observe a lot just by watching. “ –Yogi Berra
There are actually three lessons for business owners, in relation to dealing with competition, in this one little quote.
Reaction Is Not Always the Best Action
Resist the temptation to run out and apply for veterinary equipment financing or any other type of financing as soon as you hear rumors that a new vet or other competitor is moving to town. If you heard that the new pizza joint is offering a lunch buffet during the week, do not start your own buffet immediately. These are good ideas and my need to happen, but resist the urge to react at the first sign of a new game in town.
Always Keep an Eye on Competition
By the same token, do not get to lax either. Keep an eye on existing competition and any new competition that may pop up. Stay open to the possibility that change may have to happen in an effort to compete. Notice how their business is doing, what sort of marketing is happening, and why people go there. If it is a new place it may just be that they want to check out something new. Do they like what they see? Watch and listen always, but do not obsess. You still have your own business to run.
Take Notice, Take Notes, and Apply When the Time Is Right
Has it caught your attention that some of your regulars are frequenting the competition? Are you hearing from your customers that they had to try the new place but the quality wasn’t as good? Maybe you are hearing they are going to the competition because they offer extended hours or childcare. Is the paper reporting they are doing great but you do not see a decrease in your business? Take notes on what you see and hear about the competition.
If you are not losing business you may not need to do anything. If you are, apply what you have learned when the timing is right. If they are new, give it a few weeks for the novelty to wear off. If you still need to make some changes to keep up, definitely do.
Sitting back and watching the competition is the best plan of action in the short-term in order to develop a better plan of action in the long-term. Part of that plan of action is likely going to be some sort of business financing. Whether you decide you need a business franchise loan, equipment financing, or some other type of loan, Biz2Credit is here for you. We have an extensive network of lenders that offers various financing options to all types of businesses. Visit Biz2Credit.com today for more information.