# Discovering Your True Business Rivals: A Surprising Insight
Written on
Identifying Your Actual Competitors
In the world of business, we often perceive competitors as external threats. They are the entities that seem to hinder our growth by undercutting prices, luring away customers, and spreading negative sentiments about us. We tend to attribute our failures and challenges to their actions. However, are these external rivals truly the primary obstacles we face?
A recent discussion with a local entrepreneur sparked a new perspective for me. When I inquired about the competitive landscape of his industry, he revealed, "The most significant competitors I face are time and materials. They impact my business more than any external rival." This notion of internal factors as "competition" was eye-opening.
As he elaborated, I realized that internal issues can be just as detrimental as external challenges. For instance, poor customer service can drive your patrons straight into the arms of your competitors.
Redefining Competition
This conversation led me to redefine what a "competitor" truly is. I now view a competitor as any "entity" that diminishes profits or adversely affects a company's reputation, whether that entity is internal or external. So, who might your real competition be? It could very well be your own business practices.
Focusing Your Efforts
With this revised definition, it’s essential to reassess your business approach. The silver lining is that you have influence over internal matters. In contrast, you have little to no control over the actions of your rivals. Thus, it makes sense to concentrate your initial efforts on improving your internal processes.
Implementing positive changes within your company can often counteract anything an external competitor may throw your way. The first area to address is customer service.
Understanding Customer Service
Many of us have encountered the phrase, "I can't define customer service, but I know it when I experience it." This sentiment is prevalent among customers, and countless resources have been dedicated to highlighting the advantages of exceptional customer service.
Interestingly, I’ve yet to meet a business owner who believes their service is anything less than outstanding. Here are two contrasting observations I’ve made regarding customer service at local banks:
- At one bank, every teller greets me by name, irrespective of the transaction size.
- Conversely, at another bank, no teller acknowledges my name, regardless of the amount involved.
It’s not hard to guess which institution leaves me feeling more valued after my visit.
Another frequent grievance I have pertains to grocery stores. While cashiers typically greet customers with pleasantries, such as "Hello" or "Did you find everything you were looking for?", this often changes once the transaction is completed. Instead of maintaining engagement, they divert their attention to colleagues, leaving me feeling overlooked.
In any business, every customer deserves full attention throughout the entire interaction, regardless of the industry. A simple acknowledgment, like using a customer's name, should be a standard practice.
My interpretation of excellent customer service is delivering the best possible experience consistently while still remaining profitable.
Identifying Additional Internal Competitors
Each month, I interact with a variety of businesses, observing both the commendable and the concerning. When assessing a business, I consider the following:
- Successful establishments may not always be tidy, but they are typically clean in customer-facing areas.
- Employees often dress in a manner that reflects pride in their work, projecting a professional image.
- Business materials, such as cards and invoices, should be well-designed and reflect a positive business identity.
- Phone calls should be handled professionally, ensuring that every employee is equipped to assist customers without needing to transfer them repeatedly.
According to Murphy's Law, complaints tend to surface when management is absent. Employees should be empowered to resolve issues without needing upper management’s involvement.
Final Thoughts on Internal Competition
While it’s common for businesses to assess their external competitors, it’s equally important to evaluate internal challenges. External rivals aim to attract your customers away, while internal competition should focus on driving more customers to your business.
The less oversight you have over your internal issues, the more your external competitors will thrive. By fostering a competitive spirit internally, you can make your rivals lose sleep for a change.
I hope you found this discussion enlightening. For more insights, consider joining my Medium community for just $5 a month, granting you unlimited access to a wealth of articles. Your support makes writing enjoyable, and I appreciate every comment and email I receive.
Tom Egelhoff’s Amazon bestselling book, "How to Market, Advertise, and Promote Your Business or Service in Your Own Backyard," is also available for those interested in further enhancing their business acumen.
Subscribe to Tom's YouTube channel, "The Art of Learning Small Town Business," and catch my weekly radio show, "Open For Business," airing Saturdays from 8 AM to 11 AM Mountain Time.
The first video, What Is It You Do? | The Answer Might Surprise You, explores the unexpected aspects of business identity and competition.
The second video, You Are Your Real Competition - It's You Vs You, emphasizes the importance of self-assessment in achieving business success.