The common assumption about the competition is that they are bad for business. And by competition, we mean the businesses that threaten to steal away your customers from you. They can be the little guys with startups that are falling into your niche, or they can be the giants of business that have more spending power than you do. As a business leader, there is reason to be worried when other businesses step on your toes, as the business you run could be placed at risk.

But there are two things you need to know about your competitors.

Firstly, they are rarely the bad guys that you might sometimes paint them out to be when considering the threats they pose to you. Like you, they too are trying to survive in the cutthroat world of business. Like you, they are identifying customer retention and taking steps to profit their companies. For the most part, you and they have a lot in common.

And secondly, your competitors can actually be good for your business. How so? Well, this is what we discuss below, so keep reading, and learn of the positives that can be gained from the competing businesses that are in your particular industry.

#1: You have the motivation to be better

The competition isn't the only threat to your business! The biggest thing you have to worry about is complacency. If you didn't have business rivals to contend with, you could become complacent, making little effort to improve your product and service, and taking your customers for granted.

But as you do have your business competitors to think about, there should be no room for a complacent attitude. You would quickly fail in business otherwise, as your customers would migrate to the companies that are innovating and treating them better. This is something you no doubt understand, and this is why (we are assuming) you strive to be better than your rivals on a daily basis. You will be working hard to improve each facet of your business, taking steps to stand out against your competitors.

It is this motivation to be better that will transform your business, so you do have something to thank the competition for. So, throw off any feelings of complacency if they exist within your business, and work together with every member of your team to surpass whatever it is your rivals are doing.

#2: There is the potential for brand loyalty

Competition is good for your customers because they have more choice when deciding where to spend their money. While some customers will migrate from one business to the next at a whim, there are those who will stick with one brand, usually because of the trust they have in the company. They will value the quality of the product or service they receive. They will be happy with the value for money they are getting. And they will be in agreement with the message that the company promotes.

When customers remain loyal to your brand over your competitors, two things will happen.

Firstly, you will continue to profit from your returning customers. And secondly, you will benefit from increased profits when your returning customers spread the word of your business to others.

This point is tied into the previous point we discussed, as the best way to earn brand loyalty is to be better than your rivals. When you stand out from the competition, your customers will have a reason to remain loyal to you.

Another way to ensure brand loyalty is to make sure people notice your business in the first place. With the services of both a marketing and a branding agency, you will push your brand out into the consumer marketplace. If they like the ethos and image you convey, they will gradually gravitate towards your business. Should they then like what you are selling, there is a higher chance that they will become loyal to your business.

#3: There are lessons to be learned from your competitors

There are all kinds of things you can learn from your competitors.

You can look at the mistakes they are making and learn from them so you don't fall into the same pitfalls. You can find out what they are doing well, and learn from their methods and strategies to shape your business. And you can learn from your competitors in a very literal sense, as there may be opportunities to speak to them at business meetings or to listen to them if they are giving keynote talks or leading training sessions.

So, let this be another incentive to keep an eye on what your competitors are doing. Consider each facet of their business, from the ways they market themselves to the ways in which they respond to their customer needs. Learn from what they are doing well and what they are doing badly and then use what you have learned to make changes to your business.

#4: There is the potential for partnerships

As we said at the beginning, your competitors are just like you. They are trying to earn a livelihood to support themselves and their families, and they are trying to satisfy the needs of the customers they cater to. In one sense then, they are not to be feared at all, as for all intents and purposes, they are trying to do the right thing. Yes, they might be a threat to your business by default but calling them the 'enemy' can sometimes be a misnomer.

Of course, there are those competitors who will purposefully trounce all over your business, with no qualms about stealing your customers. They will care little if you are eventually put out of business. You can safely call these competitors the 'enemy' and you do have reason to be worried about them. But it is for this reason that you might team up with those other business leaders who are simply trying to get by. By forming an official partnership, you could merge your business with theirs, as this would create a business that was a stronger force to be reckoned with. You would benefit from their skills and experiences, their finances, and their customers too.

These are all reasons why the competition can be good for business. So, while there is the chance that they could be perceived as a threat, remember that their very presence can give you the incentive to improve and grow your business. That's a good thing, right?