Almost every small business owner has to deal with competition, no matter what industry you’re in. Perhaps the competition is local, just down the street. Or maybe it’s an online competitor. Knowing how to handle competition is vital to the small business owner, especially new competitors.
When you first started your business, you probably took a look at your competition. You looked at what they were doing, which customers they were targeting, and how they differentiated themselves.
But what do you do about a new competitor who enters and disrupts your market? The new competitor is not only trying to draw in brand new customers to the market; they are also looking at some of your competitors’ customers—and yours, too. They might even draw some of your employees.
The new entrant to the marketplace forces you to react—but you don’t want to make a mistake. Small Biz Viewpoints came up with some advice for how to respond to a new competitor—and how not to.
Let’s look at their list of do’s and don’ts.
- Reduce Prices
- Slack on Customer Service
- Kick Off a Large Marketing Campaign
- Badmouth the New Competitor
- Study the Strengths and Weaknesses of the New Competitor
- Improve Your Quality and Customer Service
- Monitor Your Business Closely
- Ensure Key Employees are Happy
- Ask Customers About the New Business