How often do you call a prospective client to follow up a proposal you sent them, only for them to tell you that they’ve just given the deal to one of your competitors?

Or do your clients say “I didn’t know you could help us with that, so we went somewhere else,” when you tell them about one of your services?

Do you meet your competitors at networking events and find yourself listening glumly as they tell you how well their business is growing and how busy they are?

Sometimes being in business can be tough, especially when your competitors seem to be getting all the work. Why are they winning the projects that you know you can deliver to your clients and your prospects? You know that you could do just as good a job – if not better – than them. So what do they have that you don’t? Why are people talking to them instead of you?

Direct vs Indirect Competitors

In business you actually have two types of competitors – direct and indirect ones.

Direct competitors are the businesses who do what you do. If you’re an accountant, then your direct competitors will be other accountants. Are you an HR Consultant? Then your competitors are other HR Consultants.

Indirect competitors are businesses who don’t do exactly what you do, but where your clients and prospects could spend their money, if not spending it with you. As a Marketing Consultant, my indirect competitors are companies such as website designers, business consultants and even PAs. This is because you might spend money developing your website in order to grow your business; a business consultant could give you marketing advice and more PAs are now offering social media services to their clients.

Do you know who your direct and indirect competitors are? If not, spend some time thinking about where your contacts could spend their money instead of with you. Don’t get too hung up on what exactly they do and certainly don’t drop your prices just to try to win more business. In the long run, that won’t help you grow your business.

The trick to winning more of the work that your competitors are currently getting is by showing your clients and prospects what it is that makes you different to them. When you can show them how you’re different to your competitors – and how and why you’re better than them – they will be more likely to buy from you. In next week’s blog we’ll look at how you can show other businesses how unique you are, to help you beat your competitors at their own game.