Sometimes, when you realise your industry is becoming saturated with competitors, stop trying to fight against them and think about how you can turn this into an opportunity.
I always remember meeting the founders of The Soap Kitchen many years ago when the husband and wife team were starting up from their dining table. Over the years, their business grew as did their competitors.
Instead of fighting against them and getting consumed with worry, they looked at the opportunity this presented. They decided to adapt their business model. Rather than continuing to just make soap, they started running workshops teaching their competitors how to make soap. But taking it further, they also started supplying them with raw materials.
The business exploded and four years ago they moved from their beautiful, but humble dining table to a shop and separate large warehouse with more than 20 staff. It is now the leading DIY soap-making supplier in the UK and Europe.
Today I met a lady who offers a service and has been met with a similar problem. She is in the holistic health and wellness industry and it seems like every other person and their dog is now entering this. Her competitors are growing daily.
She recognised she was having to work harder but not seeing any increase in profits so came to see me. Rather than getting flustered, she went through everything with me and we soon realised a golden opportunity right under her nose where she could help others entering her profession. She could teach courses on how to get to the level that she had reached.
Create opportunities out of problems
Rather than looking at helping her competition adversely affect her, she saw the opportunity to create more income. This would also raise her profile in the industry giving her business visibility. She would now be integrating with competitors rather than trying to avoid them.
If you’re struggling with competitors, consider what hidden opportunities are out there for you. Don’t let your initial panic make you blind to these. If you’ve been in business for a while, and other new faces are appearing, take advantage of this. See how you can help them whilst creating a new income stream for yourself.
You might surprise yourself and find you enjoy it whilst significantly increasing your profits.
