If you’ve spent time and money developing products, services, prices, channels or a way of doing business that gives you an advantage over your nearest rivals, it makes sense to keep these unique and exclusive to your business for as long as possible.
Sometimes you can gain a permanent advantage, such as legal protection for intellectual property, but for most small businesses, it’s likely that competitors will try to battle their way into your market. When you first start up, it can be like surviving a siege, as competitors try to tear down your castle walls. Luckily there are things you can do to bolster the ramparts.
Look to discourage new entrants by emphasizing the barriers to entering your market, or anything that makes another business owner think it’s too hard to compete directly. An established brand in the minds of customers is one way. If you asked ten people to name an online marketplace, an accounting software provider and fast food, nine of them will probably say Amazon, Xero and McDonald’s. These businesses have invested in their brands to be top of mind.
To prevent new businesses from entering your market, try:
Anything which makes someone think twice before setting up outside your business is useful.
Having the law on your side is handy when it comes to stopping any imitators. Your IP includes the parts of your business that you can legally protect and take action if anyone breaches your rights.
This includes:
To help decide what to do, make a list of the essential elements of your business you can’t do without, identify if they can be protected and then weigh up the cost of legal protection versus the possible loss.
An intellectual asset is a competitive advantage that usually can’t be legally protected, such as your business contacts, networks, your business know-how and knowledge of what customers want.
In these cases, you can still build a barrier by:
List what intellectual assets are mission-critical to your business and outline how you’ll keep these elements confidential.
If one of your key advantages is being able to source inventory or materials cheaper than competitors, allowing you a higher-than-average margin or to price lower while still making a decent profit, protect it by:
Safeguarding your price advantage will help your business remain resilient and agile in a competitive market.
This goes beyond having satisfied customers. It’s about creating a brand that consistently delivers excellence and stands out in the marketplace. To maintain this edge, make sure that every aspect of your business reflects your commitment to quality and customer satisfaction.
Regularly gather customer feedback to understand what they value most about your products or services and identify areas for improvement. Implement robust training programs for your team so that everyone upholds the same high standards. Monitor market trends and competitor activity to stay ahead and continue refining your offerings. Additionally, consider investing in technology or systems that streamline operations, making it easier to deliver a reliable and enjoyable customer experience.
If you can prove you know more about your industry than anyone else, it’s a great advantage and hard to copy. Beyond sharing insights on social media and participating in events, consider creating in-depth resources such as whitepapers, eBooks, or industry reports that showcase your expertise. Collaborate with reputable organizations or thought leaders to co-create content, amplifying your credibility and reach.
Develop a strategy to stay current on industry developments by subscribing to leading publications, joining professional associations, and engaging in continuous learning. Share your findings with your audience in an accessible and engaging way to reinforce your leadership position. Finally, consistently evaluate and refine your messaging to highlight your unique insights and the value you bring to customers, thereby solidifying your role as the go-to expert in your field.
When you take steps to protect your competitive advantage, you’re safeguarding the foundation of your business’s success. In a constantly evolving marketplace, maintaining your edge requires strategic planning, continuous improvement, and vigilance against potential threats. Whether it’s through legal protections, refining internal processes, or staying ahead as an industry leader, your efforts to defend what sets you apart will make sure your business remains resilient and ready to thrive. Remember, your competitive advantage isn’t just what you have today. It’s what you cultivate and protect for tomorrow.