No need to start slashing tires 🔪

You’re chatting with a regular when they casually mention the news. Or maybe you’re scrolling Instagram when you come across a cheery, sponsored “We’re Hiring” post. Or, maybe worst of all, you spot a shiny, new “Coming Soon” sign in the window across the street.

No matter how it happens, nothing will ruin your day like learning a direct competitor is coming to your block, to your community, or just too close for comfort.

Competition in business is as certain as death and taxes - it’s only a matter of time before you’re going head to head with another business that will compete for your customers' attention and money.

And while you can negotiate an exclusive in your lease, that doesn’t prevent a direct competitor from opening across the street if your landlord doesn’t own that property, and e-commerce knows no boundaries. Here’s how a few of my clients over the years have found strength and differentiation in competition.

A rising tide rises all ships
Pedal Retailer CitySwing is not the only indoor golf concept in Washington DC – in fact, multiple competitors opened in town while CitySwing was still a pop-up. Founder Tari Cash refused to buy into a scarcity mentality. An increase in the popularity of golf can benefit everyone in the space, especially since the game has historically been notoriously exclusive.

Rather than duking it out over the same slice of the proverbial pie, multiple concepts in the same space can actually increase the size of the market by broadening the potential customer base. Lean into what differentiates your business, and be sure you’re communicating that clearly in your marketing.

Free advertising
Coffee is one of the most saturated categories - and yet new concepts are opening all the time. Compass Coffee is no stranger to competition - it’s basically impossible to find good real estate that isn’t already in proximity to one mermaid-clad major national competitor.

The team realized that many of their customers actually prefer to buy from an independent, and that they could actually benefit from the brand awareness of their biggest competitor. Picture this: a tourist in need of coffee seeks out the national chain out of habit rather than excitement, and encounters Compass Coffee on the way. And, just like that, Compass has gained a new customer without a single dollar spent on marketing…and maybe sold some sweet merch along the way. NB: In order to effectively employ this strategy, you will need a space that is highly visible and easily accessible, so don’t skimp on the real estate fundamentals!

The enemy you know
Bash Boxing started their real estate search before their biggest competitor was in the market, with a plan to be first-to-market. That plan was foiled when we learned during lease negotiations that that very same competitor had leased a space downtown. It wasn’t too late to pull out of the lease, and yet the Bash team stayed the course. After all, it’s a question of when, not if, you’ll find competition. Once we knew where and when this competitor was opening, we could plan and position ourselves accordingly. It’s infinitely harder to hit a target you can’t see.

Competition is inevitable, but good concepts can become better in the face of competition. All the more reason to be picky about your real estate, and exacting in your lease negotiations.