Keeping Your Friends Close But Your Enemies Closer In Small Business!

INTRODUCTION:

Most of you may have seen The Godfather where Michael Corleone uttered his famous quote about keeping enemies closer than friends. It has to be said that in business this saying can also apply for many reasons. In all walks of life their will always be friends and there will always be enemies. In business they could be a competitor or a supplier so why would you want to keep them close?

Figure 1: Just like in The Godfather, know who your enemies are and learn from them!

1. Learn What The Best Is doing

As a small business accountant and business advisor, whenever I see a client I always ask if they can tell me who it is that is the best in their field. Just like them we have other small business accountants in competition so I am always interested in what they are doing and offering and comparing to what we do. When clients give me an answer about who they think is the best I ask them why that is, as after all success leaves clues. The reasons can be many such as the competitors have:

• more moneydue to size (better cash flow) to advertise and spend;
• latest technology efficiencies;
• better marketing;
• better product offerings and service;
• cheaper price;
• something but not really sure.

Now whilst some of these maybe true, is it possible that your business could be doing at least some of the same things and even better? If it's price, what you can counter with your offering such as service and quality? Could you deliver faster and do you care for your customers after they purchase?

If they are marketing who, where and how are they doing this to? Have they identified a target market or is their a niche you could be marketing to instead?

2. Identify How They Could Take Away Market Share

There's no doubt that a competitor will be after not only non-customers but your existing customers. Therefore, what are you doing to make sure your customers will stick with you? If they are doing something you are not what is the risk that your customers will think your competitors would be better for what they need and make a switch?

In a perfect world you will not only match what a competitor is doing but also do better. Write down a list of things of what they are doing that could be a deal breaker with your customers. How then can you cut these off at the pass?

3. Be Able To Show Customers Why They Should Deal With You Instead

Do you explain anything extra you might do for your customers that they do not realise? Do they understand the extra service, warranty, guarantees etc when they deal with you or do you assume they know this?

When was the last time you thanked a customer for paying or showing that you appreciated their business? Do you regularly survey your customer base and ask for feedback whether it is good or bad? Do they know somebody who could use dealing with your business as well?

Figure 2: Some enemies are better off dead but there is such a thing as a good enemy! (Watch out Joe & Ado!)

4. Monitor On Line Feedback

In today's digital world, surviving an online interview is very important. Negative feedback can cost you new business but you may also pick up a few clues about your competition which tell you what customers like and don't like. Make a list of both of these and then work out whether you can do the things people like and avoid the things people don't like.

It just makes sense!

Figure 3: It's important to have friends as well but will they tell you what you just want to hear?

5. Potential Opportunities To Work With Them

It won't always happen but if you can keep close to your enemies in a 'nice' way, sometimes there could be opportunities to work together. It could be:

• a job too big for them on their own;
• buying group opportunity so cheaper buying for both;
• merger or acquisition and succession planning;
• referrers of business both ways for customers they don't want and customers you don't want.

CONCLUSION:

Having enemies might sound unpalatable but you can actually use them to gain an advantage. Small business advisors will advise that knowing how your enemies can hurt you in business is important but also how they can keep you on your toes and help strive for continual improvement is even more important.

Have a healthy attitude to your enemies and you will improve both personally and in business!