There are people out there who are plotting right this minute to eat your business lunch! They are plotting to do business faster, better and smarter than your business. They are plotting to take your customers and steal your revenue. They are plotting to put you out of business.
So what do you do? If you make sure you know who they are, you may actually find out they have a lot to teach you. Plus you will avoid uttering a failing entrepreneur’s lament “where did they come from?”
It is absurdly obvious, isn’t it? Stay abreast of your market and all that is happening. Of course, you may be one of those rare business owners who is saying “no one else is operating in our niche. Our business is unique.” If this describes you, read the statement in quotes at the end of the paragraph above because you will be saying it very soon.
No matter what your business is you should be intensely monitoring all of your competitors, both to stay ahead of them and “to borrow” their good ideas.
So why, don’t most leaders in business make this a standard practice? Ego and pride are two of the answers as most leaders believe, unfortunately, that they are the smartest and best in their niche. Which reminds me of a quote from the indefatigable Satchel Paige “Don’t look back, someone may be gaining on you.” Well, in business, if you are not looking back and around you, to see who not only is gaining on you, but blowing by you… you are an egotistical and prideful fool.
Even if you do study your competitors, I would bet almost all of your time is spent concentrating on their weaknesses, not spending any time on their strengths or what makes their business successful. Why? — because you think they’re stupid (which is the other side of thinking you are smarter and better).
Think about this, your competitors think the same way you do. They think their business is stronger, better positioned, will grow faster and in the long term be more successful. So why wouldn’t you want to learn all about them? So leave your ego and pride at the door and stop being part of the business culture of vilification and crude mockery. Instead value your competitors for their boldness of vision, their ability to execute and implement and for their organizational prowess.
So step back and assess your competitors. If you do this fairly and objectively, it will help focus your efforts in a meaningful and productive fashion, and provide some valuable insight that will make your own business stronger.
Here’s how to do it! First, take a look back at the last 12 months. What are the smartest things your best competitors did? And don’t just ask yourself, ask your senior management team, your shared customers, your board (if you don’t have a board then put together an advisory council), even other business leaders.
I would suggest you develop a questionnaire and have each person respond in writing. The questionnaire should be as detailed as possible, knowing that some people may not know the answer to every question. Don’t have the time? Then hire a consultant as this project, if done right, will have an enormous ROI.
Then examine the results. Are your competitors doing things you considered and rejected? Have they launched initiatives you hadn’t thought of? What impact are your competitors having on your business- lost customers, loss of revenue, alternative revenue projects that up to now are a lost opportunity for you? What is it about your competitors that created conditions for these business wins against you?
Which leads us to the next step on the ladder of self-examination — What is it about your competitors’ organizations that enable them to have any advantage over you in the marketplace? Virtually every business has competitors who are doing something better in a particular niche than you are!
For example, take the HR side. Are they attracting better people, stealing good people from you and others? Do they pay better, have better benefits? Do they have better mentoring or leadership development programs? Is their operating culture better, more productive, healthier for their employees?
Or look at Marketing. Are they faster at bringing new products to market? What kind of promotional support do they give their products? What vendors do they use and where and why are their products better?
Go through the same exercise in every integral business area, and identify where they are stronger — and then put together a detailed strategic plan to improve your competitive abilities and your competitive performance against them.
One other way to learn from your competitors is role playing.
Become your strongest competitor. How do they view you (you can bet they are looking at you)? What do they do better than you? Can you identify what their next steps against you might be? Or consider ways they may be strategically thinking of utilizing their talents and abilities against you in the near term?
So take some time away from doing what you have always done. Stop studying the lessons of the business books and the legendary brand name leaders they celebrate as the way for your to become a better leader.
Instead, spend some time studying who wants to eat your lunch. You might just learn something.