Business Education

7 Ways Entrepreneurs Can Deal with a Competitor Who Plays Unfair

We tend to think of unfair trade practices as a multi-billion dollar corporation scheme. Mega companies like Microsoft, Facebook, Apple, and Google typically come to mind. And while it’s true these International entities do as much to monopolize their industries as possible, unfair practices can happen on a much smaller scale. Entrepreneurs entering the small business space can also encounter competitors who just won’t play by the rules. When this happens, it’s important to know how to handle such a circumstance.

Standing Your Ground. How New Entrepreneurs Can Navigate Unfair Competition

Starting a business is no easy feat, especially when you’re up against established competitors who may not play fairly. Unethical practices, market manipulation, and monopolistic behaviors can create an insurmountable environment for newcomers. But resilience, strategy, and ethical principles can turn the tide in your favor. Here’s how new entrepreneurs can tackle unfair competition and carve out their own space in the marketplace.

1. Understand the Battlefield

Knowledge is your first line of defense. Research your industry, your competitors, and the market dynamics. Understanding the strengths and weaknesses of established players—and how their practices may put them at an artificial advantage—will help you craft a more effective strategy.

Identify gaps. Unethical competitors often overlook underserved markets or segments. Find those gaps and position your business to address them with integrity.
Know your rights. Familiarize yourself with laws and regulations that govern your industry. If competitors are engaging in illegal practices, knowing your rights empowers you to take action.

2. Build a Strong, Ethical Foundation

Operating with integrity isn’t just good for your conscience; it’s good for business. Consumers are increasingly drawn to companies that demonstrate authenticity, sustainability, and fairness.

Highlight your values. Communicate your commitment to ethical practices. Share your story, your mission, and your vision to build trust with your audience.
Deliver exceptional value. Focus on offering high-quality products or services that stand out on their own merits. A strong value proposition can outshine even the most aggressive competitor tactics.

3. Leverage Technology and Innovation

Established competitors might rely on outdated methods or infrastructures. Use your agility as a newcomer to your advantage by embracing innovation.

Streamline operations. Utilize technology to optimize efficiency, reduce costs, and improve customer experiences.
Disrupt the status quo. Explore creative solutions to existing problems in your industry. Innovations that challenge conventional methods can set you apart.

4. Build Strategic Alliances

David didn’t take on Goliath alone, and neither should you. Forming partnerships with other small businesses, suppliers, or even non-competitor firms can strengthen your position.

Collaborate to compete. Pooling resources and expertise can help level the playing field.
Engage your community. Whether it’s a local neighborhood or an online niche, building a supportive community around your brand can amplify your reach and resilience.

5. Use Legal Avenues Wisely

If unfair practices cross legal boundaries, don’t hesitate to seek professional advice. Regulatory agencies and legal experts can guide you on how to address competitors who break the rules.

Document everything. Keep detailed records of any unethical behavior you encounter. This documentation can support your case if you need to file a complaint or pursue legal action.
Advocate for fairness. Consider joining industry organizations or coalitions that promote fair competition and ethical standards.

6. Focus on Your Resilience

Unfair competition can feel daunting, but your attitude and mindset are powerful tools.

Stay persistent. Success often comes to those who refuse to give up, even in the face of adversity.
Learn and adapt. View challenges as opportunities for growth. Adapting to adversity will make your business stronger in the long run.

7. Let Your Customers Be Your Advocates

Happy customers are your greatest allies. Focus on building strong relationships with your clients so they become loyal advocates for your brand.

Encourage reviews and testimonials. Positive word-of-mouth can help counteract any negative influence from competitors.
Engage authentically. Foster open communication with your customers. Transparency and genuine care go a long way in building lasting trust.

What We’ve Learned

Facing unfair competition is undoubtedly challenging, but it’s not insurmountable. Remember, every great company started as the underdog—and with the right strategies, so can yours. Take a stand, stay true to your values, and build a business that not only competes but inspires.

Want to Accomplish More?

Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do?

We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test.

You can call us for your free appointment at 480-636-1720, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

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Is Your Business Charging Enough for its Products and Services? Probably Not. Here’s Why…

September 30, 2021 No Comments

“Sure, we lose money on every sale, but we make up for it on volume.” This witty saying is often repeated in the business world because it effectively demonstrates a fundamental flaw with a company’s operating model. But, like any really good bit of humor, it contains an undeniable truth. Plus, it is probably applicable to your own business in an abstract way. If you have ever wrestled with raising the prices you charge for your business’ goods and services, then now is a great time to resolve that issue. Why Businesses Don’t Raise their Prices Although large corporations and big companies do raise their prices fairly routinely, small business owners are averse to doing the same. It’s not because small business owners aren’t smart operators, it’s merely the fear of the possible repercussions. Perhaps the biggest objection is that maintaining lower prices attracts new customers and greatly influences repeat business. While this might be ostensibly true, it can’t exist in perpetuity. A major part of running a successful business is knowing at what price to value your services or products. Entrepreneurs and business owners must ensure a balance in price between costs and gains. While low prices are certainly an attractive selling point, a variety of factors can bring pressure to bear on your bottom line, necessitating a higher charge for your services. —Forbes.com Another reason small businesses don’t raise their prices is that they’ve become so accustomed to their charging schedule. Though it sounds like a cop-out, it’s just the comfort of complacency that allows them to dismiss the notion of increasing their prices. Then, there are the logistical factors that come into play, which is particularly true in retail, where items must be individually updated, along with point of sale systems. Three Compelling Reasons Businesses should Charge More Even though most small business owners would gladly welcome a pay bump in their bottom line, they avoid increasing what they charge because they fear it will result in a loss of customers. However, this only looks at one side of the equation. Here are three compelling reasons why businesses should charge more for their products and services: There model is outdated. It’s a real accomplishment to stay in business for years on end. Everyone knows the statistics, that a high percentage of businesses fail in the first two to three years. But thereafter, they become not only viable but probably profitable enough to sustain a few sets of disruptive circumstances. Since business owners always experience ups and downs, they find a great deal of unconscious comfort in their pricing models that they established at the outset. But, as years go by, prices should go up incrementally to keep up with the times. There’s a lack of other service providers. The very fact that so many businesses fail, compounded by the shutdowns resulting from the global pandemic, means there are likely fewer service providers around right now. This represents a prime opportunity to market more aggressively, raise your prices, and build out quality staff. If you don’t, you’re missing a key moment that you’ll probably regret in the future. The cost of doing business just keeps rising. Of course, everything costs more now than it did just a short time ago. It’s not just the shortage of materials that the world is currently experiencing, but also other dynamics, such as inflation, the always rising costs of employee benefits, insurance, rent, and just about everything else associated with the cost of doing business is going up. What other reasons warrant raising prices? Please take a few minutes to share your thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Stuck on a Business Name? Here’s the Secret to Unlocking the Right One

May 28, 2025 No Comments

Choosing the perfect business name can feel like an impossible puzzle—one that holds the key to your brand’s identity, credibility, and first impression.

Get Your Body Butter and Toothbrush Rentals Here! What could Possibly Go Wrong?

April 10, 2019 No Comments

Strangely, no one is lining up outside the body butter and toothbrush rental stand. How odd? Who would have guessed such an idea wouldn’t take off? After all, you have a huge selection. So, there are plenty of choices. Yet, no one is interested. Something’s amiss here and you can’t quite put your finger on it. Even Good Business Ideas are Not Guaranteed Winning Strategies Okay, so the headline says it all. It’s a totally ridiculous business model. There’s not a person near or far interested in renting body butter or a toothbrush. Yet, people do come up with some strange concepts to sell and are surprised when they don’t pan out. You’ve created something unheard of. You’re passionate about it. You believe in it. You’ve also spent an insane amount of time figuring the whole business out down to the tiniest detail. By now, you can talk about it for hours — and to top it off, it actually is a great idea. But for some reason, you can’t sell it. So, what’s the problem? —Forbes.com On the flip side, there’s no guarantee a really good idea will widely succeed. Even the best concepts run into problems. In other words, solid products and services aren’t immune from the realities of the marketplace. Put another way, there is no straight path from unknown to sensation. How to Test a Business Idea So, how do you know if a business idea is worth pursuing in the first place? How can you determine if it’s something which has a real chance of making it in the free market? Try these suggestions to establish a baseline: Look for successful competition. Everyone wants to believe their idea is “new.” But, that’s usually not the case. In-part or whole, it’s likely been done before. So, look for examples and see how they fared. Test different versions several times. There’s no such thing as perfect. Meaning, your business idea isn’t without some sort of flaw. Even if you’re really confident in what you’ll offer, it could perform better or worse, depending on a few tweaks. Offer a variety and see which works. Explore the industry to gain an understanding. It’s certainly true good ideas are boxed out of the marketplace because they aren’t allowed. Perhaps it’s too heavily regulated or there are just too many obstacles to make it feasible. Think about how it can scale and adapt over time. If the business can’t scale up to meet demand, that’s a big, red flag. And, if it’s not able to evolve with the changing times, that too, is a big obstacle. Think about creating a Minimum Viable Product (MVP). Ok, what the heck is an MVP. A minimum viable product (MVP) is a concept from Lean Startup that stresses the impact of learning in new product development. Eric Ries, defined an MVP as that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort. This validated learning comes in the form of whether your customers will actually purchase your product. A key premise behind the idea of MVP is that you produce an actual product (which may be no more than a landing page, or a service with an appearance of automation, but which is fully manual behind the scenes) that you can offer to customers and observe their actual behavior with the product or service. Seeing what people actually do with respect to a product is much more reliable than asking people what they would do. If the business can’t scale up to meet demand, that’s a big, red flag. And, if it’s not able to evolve with the changing times, that too, is a big obstacle. How do you test a business idea to ensure it’s a viable one? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.