Competition is the name of the game. The more competitive an entrepreneur is, the more likely he gets ahead in the business world.
How does one get ahead of the competition?
A basic tenet is to find a competitive advantage and capitalize on it.
This may be in the form of a unique product that is difficult to copy or cannot be imitated for some reason or another (e.g. you have a patent to it).
This may be a technology or process that you have and others don’t for making the product or service in a certain way.
This may be access to raw materials. An entrepreneur uses byproducts — for free or for a pittance — from another family member’s operation in her own production of, for example, novelty items.
It can be a strategic location: proximity to your customers, sources of raw materials and manpower, etc.
The competitive edge may be highly skilled workers, having what may be called a “dream team” or your own high degree of commitment to producing excellent products or services.
These competitive edges translate to more leeway in pricing your products lower than the competition.
But these are not enough.
To be ahead in the competition game, entrepreneurs are urged to think like a spy.
J.C. Carleson, a former CIA agent, gives the following advice:
1. Study how the competition operates.
Although there are plenty of techniques and strategies in business, Carleson says most companies have standard modes of operation.
“Companies are often predictable. For example, they might always compete with price or quality.” To find out what your competition is up to, get involved in your industry’s community.
“Have an ear to ground,” she says. “Attend awards dinners. Listen to the gossip; it often has a lot of merit. When you know your competition’s strengths and weaknesses, you can beat or counter their offers.”
2. Notice when there’s a leadership change.
Carleson says if your competitors recently hired new leadership, it’s time for you to make a move. Whenever there is a major personnel change, there will always be vulnerability, she says.
“For every job that is filled, there is someone else who wanted it. This is the time when work can be disrupted,” she says. “It’s time to get aggressive in your own approach, because your competition is in transition and cannot act as quickly.” Take advantage of the fall out, and approach new clients.
3. Build alliances.
Building relationships is part of business, says Carleson, but most business owners view this task as part of marketing and sales. Consider the intelligence value of relationships with suppliers, consultants, legal and financial representatives and any other organization that your company regularly comes into contact with.
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A word of caution, though. Doing market intelligence has its boundaries. It is one thing to legally get the information you need to run your business well; it is another matter to put bugs in your competitor’s phone, pretend you are a prospective big customer to find out what otherwise should be his trade secrets or send someone to work in his factory to … what else — spy on him.
Photo: “WebRTC spying on you” by , c/o Flickr. Some Rights Reserved