Grow Your Business

In the world of business, few establishments have zero competition. That is why finding and establishing your edge can help your business hold the lead over the other players in your industry.

Part of discovering your advantage is to study and report on the competition. Business intelligence may mean scouring the web for information about companies in the same field, making visits to their stores, or asking their customers about their service levels.

According to small business consultant Raymond Olager of Digital World Inc, a telecom firm that specializes in digital marketing, only when you have the lowdown on competing businesses can you begin looking for your competitive edge. In short, ask yourself what you can offer that your competitors cannot.

Olager outlines five areas to evaluate when looking to build an upper hand:
1. The target market. Look for gaps in the demographics which other businesses target. "Are there underserved markets within the market?  Does your competition miss out on some of the users by not effectively targeting them? Look at these factors and you may discover a goldmine for your business," Olager said.

2. Pricing. Matching or beating your competitors' prices is a good way to lure customers, but it may not keep your finances healthy in the long run. "You can only beat prices if your overhead is low enough to make it work. Going for volume means you should consider the cost of inputs you have in the product. Special sales on hot items can be a more attractive option than always trying to beat the price of your competitor," Olager said.

3. Make it easier. People are always in a hurry, so the business that can find a way to expedite the sales process without compromising excellent service usually wins customers over. "Train your staff to become more proactive, and make sure that your service doesn't suffer because you want it to be faster. Faster should not mean rushed," Olager said.

4. Trump their service. As a small business, you can try to outflank competition by having a more direct approach or a more personal feel. "Customers are typically willing to pay a little more for personal attention. Consider where your competitors are lacking on a customer service level and do it. And the good thing is, it only entails good old fashioned personal touch, instead of relying on technology," Olager said.

5. Increase incentives. Build a reputation for entertainment and generosity. In this time of economic difficulty, the business that gives the most value for money usually rises to the top. "If a consumer is hard pressed for money, then he will be more selective on where he spends it. A store or business that rewards its patrons is a big plus when trying to attract repeat business, especially those who make them feel good about themselves," Olager said.

The basic tenet of finding a competitive edge is to know your market inside and out, and trumpeting your good point for all to see. Evolving with the competition also means tracking market trends, and changing strategies to suit changing consumer needs. Are they gunning for lower prices? A better personal level service? Answering these questions will help your business stay ahead of the pack and on a steady growth path for years to come.