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Established competitors might rely on outdated methods or infrastructures.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.

Like this article?

Why Getting a Bad Credit Loan for Your Small Business Is Usually a Bad Bet

October 31, 2024 No Comments

You’ve probably heard the comparison before – starting a small business is like planting a seed.

7 Challenges Every Bootstrap Entrepreneur Faces

May 16, 2017 No Comments

The entrepreneurial experience is one of duality, a paradox, that’s both exciting, full of hope, and, anxious, stymied by fear. Two very different states of mind and emotion, however, in the majority of instances, one set is preceded by the other. It comes with that spark of the proverbial, “ah ha!” moment–excitement and genuine, heartfelt belief that whatever it is, it will work. Often, this elation is short lived and it’s little wonder why. We grow-up with expectations and more than enough are not fulfilled. So, we learn skepticism, caution, and to examine our actions before blindly leaping. This is precisely why extreme success stories remain so unfathomable–often accompanied by the phraseology, “against all odds.” These sets of circumstances cause us to look at those odds and be honest about the entrepreneurial journey, which more often than not, requires a lot of work, much dedication, and, the ability to see and believe what others don’t. 7 Challenges Every Bootstrap Entrepreneur Faces When you start your own business, it might be a side gig, something that only takes a few hours out of your week and is intended to grow incrementally. It could also be the resort of finding yourself suddenly unemployed and the opportunity to take control of your own future provides all the drive necessary to start and never look back. Others partner together and use old fashioned sweat equity to get their businesses off the ground. Whatever the case might be, there will be obstacles. Regardless of size, most businesses face many of the same challenges every day. Maximizing profits, minimizing expenses and finding talented staff to keep things moving seem to be top challenges for both SMBs and large corporations. —Entrepreneur.com It might come as a surprise, but new companies fail for two primary reasons: too little business, and, too much business. In the former instance, there’s obviously a lack of revenue; but, the latter seems counterintuitive, perplexing, though perfectly explainable–overwhelming demand. These dynamics are usually out of the company’s control but there are others, and, just one of these can be enough to cause failure: Stability. While you might have a marketable and sellable idea, possess the talent to sell it, and have enough resources to get it out there, you don’t control the economy. Being employed provides a sense of security, though arguably, it’s a false one. There is no guarantee your vision will come to fruition in the way you now imagine it, or, at all. Income. It’s a fact that many entrepreneurs don’t take any salary for the first several months, even for a year or more, because the money’s better spent rolled back into the business. Having to forego a steady income, even temporarily, can be too much to bear for some, it’s looking to the future and taking stock of gains that provides the remedy. Sustainability. The marketplace changes and some businesses become near or completely obsolete. In the wake, new opportunities emerge, but that doesn’t undo the damage suffered by those caught on the wrong side. Pivoting when times begin to change is a necessity to embrace. Comfort. One thing that seems strange is what’s obvious by its absence–being the boss. Sure, it will be you who’ll be in charge, which means you will be making the tough decisions, you will be the one responsible for company mistakes, and you who must put your foot down. Schedule. Your work and personal lives will intersect many times during your startup period and here again, it’s because you’re the boss. While you’ll have set boundaries, you’ll have to do so smartly and be flexible. Sleep. Lying awake, brainstorming, putting in a lot of extra hours to get something done, having to meet this deadline or be present for a meeting, all of these are common. Try to find a schedule that largely works and take advantage of downtime. Seventh on the list is confidence, and, it’s among the most powerful of influencers. Your confidence will be challenged many times, but this just comes with the territory. You will have doubts, falter, and make miscalculations, but these are only as hurtful as you allow. Finally, if you have a viable business model with a demand for a product or service, then much of your success falls on you ability to persevere. Many businesses fail or fall “three feet from gold” because the entrepreneur quit. In the toughest of times, I encourage my clients, as I did for myself, to take Action every day on something that will help to grow your business. Sitting, worrying or praying does no benefit without Action. And, Action helps to resolve anxieties and fear. So, go out and pursue our dream today, and take Action every day to building your business! [shareaholic app=”follow_buttons” id=”26833294″]

What to Do with an Unwanted Inherited Business

September 16, 2021 No Comments

Owning a business is not something that everyone aspires to do. Sure, many people like the idea of being their own boss. But, there are definitely individuals who prefer to avoid the stress and anxiety of being an entrepreneur. Of course, there are many different sets of circumstances. For instance, children who follow their parents and run the family business, taking it over after their parents retire. Or, people who unintentionally fall into their own business without actually setting out to do so. For example, someone who inherits a business from a relative. Although this might seem a bit far-fetched, it does happen more often than one would think. So, what options are available to an heir who really does not want to take over the business? Types of Inherited Businesses Probably the most common form of an inherited business is a family company. Usually, the children grow up in and around the operation and are at least familiar with it. Other times, the children aspire to follow their own career path and never work in the organization. Additionally, there are heirs who inherit a family-owned business that they have never really been acquainted with whatsoever. If you’ve inherited a company, there might be a lot of questions on your mind. You might not want to be an entrepreneur, or even if you do, you might prefer to work in a different industry. Even if you’re ready to take on the business, you might be unsure about how to deal with current employees and suppliers. —Nerd Wallet Though these circumstances are far less common, they do occur. One prime example is someone who inherits a commercial property. That property is leased by several other businesses and generates a profit. The owners may not even be directly involved with the day-to-day operation and rely on a firm or individual to handle the necessities. These would include things like maintenance, repairs, negotiating leases, upgrades, and more. What to Do with an Unwanted Inherited Business Your first instinct could be to just sell it and be out of the situation as quickly as possible. But, if it’s generating a consistent profit, that might not be a wise idea. On the other hand, even if it does generate a profit and you’re completely unfamiliar with it, it could turn into a gigantic mess. Here are some possible options to explore: Learn about the business. Regardless if you’re set on selling it or remotely considering taking it over, you’ve got to know what you’re dealing with first. It’s imperative that you educate yourself about the business in order to make an informed decision as to which way to go. Don’t make the mistake of letting your emotions take over. Instead, take at least a little time to understand precisely what it is and more importantly, how much it’s really worth. Consider being an absentee owner. Although this is quite common in the business world, it’s always a risky proposition. And, it’s probably why you don’t want to get involved in the first place. If you let other people run it, you’re putting your trust into others and that could easily lead to a very regrettable set of circumstances. However, if it is something like commercial property and your relative was also an absentee owner, at least give it some serious thought. Invest in the business. If you do want to give it a try, don’t go it alone. Bring in a business coach to guide you through the process of taking on an entrepreneurial role and become familiar with all it takes to head up this type of operation. If you find it isn’t a good fit, you can always sell it and move on. What other suggestions would you give someone in this position? Please take a moment to share your thoughts and experiences so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.