Many small business owners find themselves facing competition that can seem nearly unfair. In too many common situations, a small business that starts to gain traction will attract the attention of copycats that try to steal the momentum for themselves.
When such problems arise, it can seem as if going on the offensive might be the only possible solution. In many cases, what will end up being more prudent and effective finding a way to differentiate a company from its less well-equipped new competitors.
Establishing Points of Differentiation That Customers Will Appreciate
Entrepreneurs who try to take some of a young company’s limelight for themselves will rarely be ready to set up for the longer haul. Instead of focusing too much on these sources of distraction and frustration, business owners who end up confronting such competitors almost always do better to build stronger foundations for themselves.
In practice, this means striving to turn a relatively small company into a better-grounded option for its customers. Some of the ways by which business owners most often are able to do so include:
- Insurance. Most smaller companies are only minimally insured, if at all. While it will always be wise to abide by whichever statutory requirements might be in place, many business owners skimp on insurance early on as a way of keeping costs down. That can make a certain amount of sense, as paying less in premiums might make it easier to keep a company growing until it has enough assets to make that unwise. On the other hand, facing copycat competitors can just as well mark the turning point where taking out more business insurance will become advisable. Doing so can establish a company as a more reliable and safer choice for customers compared to the less-responsible and committed alternatives.
- Warranties. On the other side of the coin, it can just as well pay to beef up a company’s own backing of its products or services. Once again, copycats will typically be much less likely than truly devoted business owners to offer extended warranties and the like.
Smarter Ways to Fight Back Against Copycat Competitors
Instead of becoming flustered or even angry, business owners who commit to strategic, considered responses like these improve the odds of prevailing significantly. While it can be unpleasant to face copycats, staying calm and strategically minded will pay off.