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Stiff Competition: Make Your Startup into a Formidable Foe

Rachelle Wilber

September 14, 2016

While established companies have brand name recognition that can cause them to see formidable and even unstoppable, in some industries, startups have their own unique advantages that can increase the odds of the startup dominating its respective industry. To have your startup be a formidable force, there are several things that you will need to accomplish.

Competition Makes Your Startup Stronger

It is commonly assumed that competition hurts a business. This may be true during the first year, with a crowded market increasing the odds of a startup failing. However, research has found that startups who make it to the three-year mark are less likely to fail when they are in industries that are highly competitive. Surviving the first three years seems to make businesses immune to failure.

Take Advantage of Your Flexibility

Startups have more flexibility and agility to adapt. You may have a solid business plan, but this doesn't mean that you must remain tethered to it. More established businesses must make decisions based partially on the opinion of a board of directors, but as a startup, you have the freedom to think outside the box and chase new business opportunities as they arise.

Train Your Employees

Formidable companies are highly flexible. For your company to constantly adapt, and to safeguard your company from the problem of the indispensable employee, it is important to have employees who are trained and prepared to take on a leadership role when the need arises. Training employees to do exactly what you do requires that you break down the skills that you need in order to do your job. Then, your employee needs to participate in leadership team development and other leadership activities. You must teach critical skills such as how to network effectively and how to develop the mentality that they own your company. Leaders must feel like respected, valued and impactful members of your team if they will act as leaders.

Don't Rush to Market

A common mistake made by startups is to try to rush to market to be the first with a particular innovation. Rushing to market can force your business to compromise on quality. Instead, simply accept that your company may not be the first to release a product and focus instead on releasing the best version of this product. Competitors who are the first to market will do much of the heavy lifting, such as investing in advertising to promote the new innovation.

Create a Tight-Knit Company

Larger companies are often filled with people who do not know each other. For instance, those in sales likely do not know those who are in the accounting department. With a startup, though, it is easy for each employee to get to know each other. This creates an opportunity for you to create a tight-knit community of workers who also are like a family. This will improve employee morale and will reduce turn-over, which can help make your company more efficient.

Be the Underdog

There is something inherently lovable about an underdog. There are some customers who will root for you simply because they are tired of an established company and would love to see a new firm rise to prominence. This is a short-lived advantage, since your company will not be the underdog forever, but you should take advantage of it while you still can.

While starting a business can be stressful, there is a light at the end of the tunnel. When you can leverage your advantages and differentiate yourself in the marketplace, you will become a formidable foe.

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