So You Think You Have Competition?

Every business owner tries to ignore the fact that competition looms around the corner.  One of the great natural buffers that has ever been designed to help distract the mind of a business owner away from worrying to much about the competition is the fact that they have their own business to tend to.  The sheer fact that there is so much to do to operate a successful business model keeps the mind of a good business owner off the view of the competition.  Even so, good competition will still attract an owners attention.  As it should.

Who Are The True Competitors?

Yet, many business owners might assume the competition is very fierce with many other businesses working their own magic trying to capture important chunks of market share.  Be careful with those assumptions.  Although every business owner needs to be very aware of what the competition is doing, many would be shocked at how many of your competitors are asleep at the wheel.  In most markets, there are only a few really good players.  The rest are operating without the desire or ability to harness enough market shares to disturb anyone's effort for control.  When market shares are quantified, studies reveal a handful of businesses truly own the lion's share of the market.  All the other models play for the crumbs and leftovers.  In most sectors the data supports this truth.

If that is true you need to decide in your business model where you want to fit with the control of market shares in your particular sector.

You need to decide if you want to play with the leftovers or work harder on capturing some larger chunks of market shares.  If you decide to capture larger chunks you will discover that the competition in that effort is very thin.

Most Of The White Arrows Are Asleep At The Wheel

Let me give you a real example.

Just three weeks ago I came upon a very good deal to acquire 18 cement mixers at well below cost to help a business associate find his way out of a serious jam.  This associate owns a small manufacturer and called me with a ridiculously low price offer to purchase one of his particular mixers.  I own a seriously tended and uniquely designed landscaped yard.  It is one of my great escapes.  He knew that fact and offered me a great deal on one of the mixers, thinking I could use it with some of my future landscaped projects.

After hearing the deal, I immediately committed to all of the mixers he owned.  Next, I quickly made a short list of contractors I personally know and many of whom I have done business with in the past 30 years.  I called 36 of those contractors on the same weekend I committed to the (18) lot and left a message for them to call me on my cell phone.  Of the 36 contractors I called, only 5 have returned my call...three weeks later.  Each of those 5 contractors who called wanted to know if I needed some work done.  After describing why I called, each purchased a mixer at below cost, too.  Not one purchased more than one.  In less than one week, I sold all of the mixers before I was able to pick them up.  I cleared $1800 in the effort and have since delivered each one.  All I did was make calls, sell them, pick them up and deliver them.  It took three trips, less than 110 miles and only four days...all cash.  I took my wife to dinner.

Being A Serious Competitor Requires Desire

 

There are three serious observations in this exercise.  One, only 5 contractors have gone to the trouble of following up on my initial call to their business phones.  That means only 14% of those business owners pursued an opportunity that came to call!  I have this question of many business owners, "Are you one of those business owners who operates like many of these contractors?"  You better improve your follow-up skills if you are behaving like 86% of these contractors reacted.  You deserve to struggle in your business model if you are behaving similar to the way these owners failed to follow-up.  Keep in mind they did not know initially the purpose of my call.  The second observation, not one contractor who recognized the deal had the presence of mind to buy them all and turn a profit moving them to other contacts in their sphere of influence.  Not one had an enterprising mind.  And the third observation comes to the purpose of this message...do not assume your competition is driving their business very hard!  In this case, 86% were asleep at the wheel!  Be very careful when you assume you have a lot of competition.  You do not.  Studies prove that fact and this example supports the studies.

What does that mean to you?  Keep cracking, keep working, and turn every stone over that comes of age to be an opportunity.  Certainly do not believe that opportunities come in the kind of package you might suspect.  Sometimes they come in unusual fashion.  So be it.  Be one of those business owners who likes to find ways to increase their enterprising efforts.  It does pay well.  Let me ask you a deeper question.  How do you think the owner of the manufacturer of the cement mixers views this experience?  What do you think happened to our relationship?  Remember how important relationships are in the development of your network.  When you improve your delivery, your ability and your accountability; you improve your future chances.

The Chinese Good Luck Knot Is Fragile

You may not know it but your chances are very good that you can work harder on capturing a larger share of your market segment.  You may need to improve your delivery, your ability and your accountability but the opportunity is there.  All you need to do is decide.

There is a very serious catch, however, in this evaluation.  Even though the competition is very thin in the area of capturing larger chunks of market share the few business models who play at that level are very good at what they do!  Your efforts will need to be improved tremendously.  Those who harness large chunks of market shares in any sector are not going to be easy to approach.  They will fight dearly for each scrap you try to take away.  Get ready for a war.  You will discover the underbelly about a lot of things you did not know were capable of occurring as your competition works its market protection process.  When you decide to move in, put your boots on.  Man the stations and load the ammo.  Your brain will get its first serious testing.  If you are a fighter, I vote you go for it.  I also believe you need to be stealth as long as you can muster it.  I also believe you need to avoid making your move personal.  After all of that, go get more market share.

Until next time...