Although it is easier to start up a small business now than it was back in the 70s, that doesn’t mean that keeping a business going is any easier. How do you keep your small business afloat and keep ahead of the small business competition?  

Well, only around 80% of small businesses survive after one year in business. These businesses that survive their first year learn from their competition how to keep their target market coming back. So, how do you become part of the 80% that survive their first year? How can you learn from your local competition? 

Here are 3 things you can learn from your local competition. 

1.Identifying competitors’ marketing

The best way to draw in customers to your business is through marketing. Be it though a Facebook post or a poster on a wall, advertising is very important. But how can you learn from your competitors’ marketing?  

Look at how your competitors advertise their business to new customers, find out what draws in these new customers to their business. Where do they advertise? Look into where your competition advertises their business, see where their adverting gets the most traction and where more customers tend to come from.  

Pay attention to what kind of advertisement draws in an audience to their company, look at how competitions catch people’s eyes and how they get people to remember their business from their advertisement.  

Remember that when it comes to marketing you must be original. Take inspiration and learn from your competitors but don’t copy! 

2.Drawing from your target audience

When starting a business, it is always important to know your target audience, but once you have a target audience how do you draw them to your business? Depending on who your target audience is, will determine how you draw in customers from that target audience to your business.  

A target audience is a group of people identified as likely customers. Unless you are changing your business model or launching a new line, your target audience will have similar characteristics and a similar demographic to your existing customers.   

So, first step is to find a competitor that has the same target audience as you and see just how they managed to draw in that target audience and get them to come back to their company. You can do this by reading through reviews from that company to see just what attracted those customers to that company and what each customer valued from their service.  

What does your competition do to get people talking about their business to others? What do they do to get positive reviews to boost their business into other people’s line of sight?  

This is a valuable step in improving your business and keeping customers. According to a survey by RightNow Tech, 86% of customers are willing to pay up to 25% more for a better experience. Earning loyal customers is important to ensure a stable future for any business.  

3.Learn from competitors mistakes

Mistakes are the building blocks of learning. When it comes to mistakes, often people are too scared to make them. As a small business you are guaranteed to make mistakes here and there, but as long as you learn from those mistakes they can be used as a key tool for your business development.  

According to a recent survey by NewVoiceMedia, 58% of people said they would never use a company again after just one bad experience.  

So, a quick response and a personal reply to any customers that have been affected by any mistakes is essential. As part of this process, it will really help win customers over if you talk to them about how you have learnt from the mistake and the steps you have taken to prevent this from happening again.  

Another way to learn from mistakes is by looking into your competition’s errors. You can do this is by reading reviews from their customers, read what those customers don’t like about those companies and make sure you work around those companies’ errors.  

For example, if customers don’t like how hard it is to get in contact with customer service for complaints and/or questions then make sure that you have made it easier for customers to do those things, and if they have a complaint then take that on board and learn from it. Find what they do that lead to those mistakes and work your way around that and don’t follow that path. 

Learning from your local competition can really help shape how you grow your business, learning from their mistakes and looking into how they attract attention is essential for giving your business a lead. Having local competition can also really help in how people see your company it can give your customers a benchmark.  

At BAS Associates we can also help you with your business growth and development whilst supporting your business financials.

For a complimentary Discovery Call to discuss the most appropriate level of support, a personalised quote and a guarantee of our best possible service, please complete the form below and one of our senior advisors will contact you.
Or if you prefer, please call 01442 560050 for our Northchurch Accountants office, 01296 681381 for our Wingrave Bucks Accountants office or 023 8202 7681 for our New Forest Accountants office.

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