Holding your business tight and sucking up the energy you need to grow your business.
There are a number of reasons why your business may become attracted to the complexity magnet.
And today we will look at one area.
Real Versus Perceived Competitors
There are true competitors to your business. The ones customers look at when making the decisions to buy your type of products or services.
And there are competitors you think are competitors that are not even considered by your customers.
Basically, it is the difference between real and perceived competitors.
Last year I wrote about a business that just sells hamburgers and they are famous for them. They know their true competitors are other places that just sell hamburgers. They use simplicity as an important part of attracting customers.
They don’t worry about McDonalds because they are not open all day and night or offer other products such as coffee, breakfast, chicken etc.
And they don’t go down the cheap price route.
If you visit these other shops you will find they sell chicken, fish and chips and open early to sell bacon and egg rolls.
These businesses are making it complex for themselves by seeing MC Donald’s as a key competitor.
To compete with the perceived competitor they added complexity to their business.
They have to add extra equipment for cooking chicken or fish. They need staff in the morning to cook up bacon and egg rolls. And their prices are low.
Pauls hamburgers don’t. They save money, energy and importantly put the savings into the customer experience and add to their profit. They have successfully escaped the clutches of the complexity magnet.
Competing with perceived competitors can take your focus away from taking the right decisions and actions to grow your business.
It can stop you attracting the customers you desire especially if you copy what they do.
And it takes you away from the simplicity track.
Over To You
What tips can you add to avoid the complexity magnet regarding competitors?
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