1 Solicit customer opinions to find your strengths.

1. People come to you for a reason, so figure out what that reason is. You could ask customers to complete surveys or questionnaires, or put a focus group together to get a sense of what people like about your business. In addition, take a look at your books to see what your top-selling products or services are. Identifying what people like about your business will help you get ahead.
   • Knowing what makes your business special shows you what you should focus on, and what you should forget about. If your customers don’t care about your warranties, for example, you don’t need to put any energy into selling them. If your customers love one particular product, you can focus on a marketing campaign to push it even further!
   • You should show up consistently.
   • Do things that can make people trust you.
   • Try to establish a relationship with your customers.

2 Run a competitor analysis to find an edge.

1. Ask yourself, “Why would someone go to them instead of me?” Compare the products and services that you offer to your competition’s. If there’s something they have that you don’t, look into it to see if you can match what they offer. Compare your prices as well. If there’s somewhere you can cut costs to edge them out, see if you can pull it off. Take a look at their advertising as well to see what people are identifying with. Note how frequently they advertise and through which channels.
   • When it comes to advertising, you may want to borrow elements of your competitor’s style, but you typically don’t want your materials to look so similar that your customers mix you up.
   • Look at their online reviews and then compare them to your online reviews. If you notice that your competitor’s reviews all mention great service and there’s nothing in your reviews about kind employees, maybe it’s time to re-train your employees!
   • Sometimes, you won’t have any control over what makes your competition attractive to others. If they have a storefront in a great downtown location and you don’t, you’ll just need to edge them out elsewhere.

3 Build your company’s moat.

1. If you have something your competition can’t replicate, lean into it. Your moat is whatever your business does that the competition simply can’t replicate. If you have one, consider spending some of your leftover revenue on making that moat even wider. This will keep your competition from catching up!
   • Amazon’s moat is their inventory. Where else can you buy books, bikes, and gardening tools online? Microsoft’s moat is their compatibility—if you buy a Windows PC, you can do anything. Apple’s moat is its technology and branding.
   • If there is one thing you do that your competition can’t (or won’t), then that’s your moat. It can be as simple as stellar service, or as unique as a special product only you can offer.
   • Not every business is going to have a moat, but that’s okay. There are still plenty of ways you can build a competitive advantage.

4 Fill any gaps in your products/services.

1. There may be something obvious holding you back, so look at the big picture. If the competition offers free consultations and you don’t, offering a service like that will give potential customers a big reason to consider you. If they’re open three hours later than you, that might be a ton of revenue you’re missing out on. Compare your business’s offerings to the competition’s to see if there are any missing services or products.
   • If you offer basically the same products or services as your competitors, figure out if there’s something you could add to gain a competitive edge. Even if it’s just opening the store earlier or giving a free drink with every purchase worth $20 or more, you’ll come out ahead in the long run if you have more to offer.

5 Create an incentive for return customers.

1. Loyalty programs are a great way to get customers to come back. Set up a loyalty program where customers can get discounts or free upgrades if they shop with you regularly. Punch cards with a “buy 10 and get 1 free” deal can be a solid way to encourage customers to come back as well. On top of that, encourage your employees to build rapport with new customers and recognize regulars. The more goodwill you can build with your market, the more likely folks will be to come back.
   • If you’re competing with bigger businesses, this is where you’ll get the upper hand. Very few customers feel personally appreciated when they go to a big box store, so if you can make them feel genuinely valued and appreciated, they’ll come to you instead!
   • Customer loyalty sales and specials are another great way to build your presence in a community.

6 Minimize turnover and grow your team.

1. If you have employees, do your best to cultivate their skills. If customers see new staff every time they come in, they may not build any personal relationship with your business so retaining staff is key. Train your employees to be kind and respectful to customers, and reward them for performing well. Do your best to cultivate a caring, professional culture.
   • It may cost less to hire brand new employees, but it’s always best to pay for quality employees. If you can, pay your workers a competitive, reasonable wage. If you don’t, they may end up working for your competition!
   • If you can retain staff and your competition can’t, you’re going to eke out a competitive advantage over time.

7 Expand your social media presence.

1. See how people engage with your competitors compared to you. Your social media is a big part of how your customers find and interact with you these days. If you aren’t on Facebook, Instagram, Twitter, or Yelp, now is the time. Set up business accounts and encourage customers to like your page or post reviews. Engage with potential customers in online neighborhood groups, and post special offers to get new customers in the door.
   • If you run a restaurant, post photos of your delicious food. If you run a clothing store, take fun flicks of new outfits as they arrive.
   • Take a look at how your competition uses social media if you’re brand new to it.
   • The more engagement you can cultivate online, the better. Always reply to people who comment on your posts!

8 Give your branding a makeover.

1. Your competition may be digging into your market because they “look” newer. If your signage is super dated and your building’s color scheme could use some love, there’s no time like now for a makeover. Consider hiring a business consultant and a graphic designer to totally overhaul your logo and signage if you have some money leftover in your budget. Keep your storefront clean to create a warm, welcoming environment for your customers.
   • If your competitors have a cool “young and hip” style going, you may want to aim for a more mature look and vice versa.
   • A business consultant should run a few thousand dollars, but you can definitely find some smaller consultants out there for $100-400. You may not need one though if you’re really confident in your branding and messaging!
   • A graphic designer shouldn’t run you more than a few hundred bucks. You can always find a freelancer on sites like Fiverr or Upwork if you really want a deal!

9 Update your website for e-commerce.

1. If you have an online business, your website is everything. If your website looks like it was made in the 90s and you made your logo years ago in Microsoft Word, hiring a web designer to give your brand an update can really help. A decent web designer will run you $500-10,000 depending on whether you want minor updates or a major overhaul. A good website is key when it comes to attracting customers and maintaining your online presence.
   • You can always use a template tool or website builder, like Squarespace, to craft a brand-new website yourself. If you’re visually adept and you aren’t super particular when it comes to customizable features.

10 Start a new marketing campaign.

1. If business is slow, a new marketing campaign can generate business. Either your competition has advertisements everywhere and you should be competing with them, or they aren’t advertising and you can get a leg up by taking the initiative. If possible, hire a marketing firm to put a tight, cohesive campaign together for you. Join your local business associations and consider sponsoring a local team to build brand awareness in the area.
   • Guerilla marketing is great if you have a really small business. Go around the neighborhood and put posters up in local coffee shops to get the word out!
   • Newspaper and radio ads are great if you want to target an older demographic in your area.
   • Billboards are a great way to make a statement if you want to attract drivers in the area.
   • Online ads are ideal if you run an online shop. You can even advertise for free just by posting on social media!
   • A marketing firm should charge $2,000-4,000 depending on how big you want to go. However, you can always hire an independent marketing consultant or simply do it yourself to save some cash.
   • Keep in mind that innovative products and services require more marketing support, as there is a higher need for education and awareness compared to common goods and services.

11 Work together with the competition.

1. Reach out to your main competitor and see if you can join forces. This won’t always work depending on the business you run and what your competitors do, but it’s always better to work with people than against them. If you can find a way to build a working relationship, either by sponsoring something together or referring customers for specific products or services, you can both flourish!
   • For example, if you run an automotive garage and you specialize in bodywork, reach out to your competition to see if they’ll refer people to you for restorations so long as you refer folks to them for minor detailing.
   • If you run a high-end clothing boutique, reach out to the secondhand store across the street to see if you can work together to sponsor a fashion show.
   • Working with the competition allows you to get some insight into their technology and skills. This can be exceptionally helpful if you aren’t sure why they’re so successful.