Have you ever noticed that similar businesses stick together, especially when it comes to customer-facing businesses like eateries and retail stores? Restaurants that appeal to a similar market might always be next to each other. You might have noticed that everywhere there’s a Starbucks, there’s usually a similar chain just over the road. Or that wherever there is a Target, there’s a Walmart nearby, often within walking distance, or even a stone’s throw. Shopping malls are filled with similar eateries, stores that sell related products and appeal to the same customers. But, far from meaning that one business struggles, it often means that all of the businesses do well. Why?
In business, we’re taught to be aware of our competition, to find ways to stand out from the crowd and to be better than companies that are offering similar products. But, areas of sustained economic growth like the city of Cedar Hill can support many businesses, and sometimes, being close to your competition can be a significant boost to yours. Let’s take a look at some of the reasons for this.
Improve the Economy of the Location
You certainly don’t want to be the only business in any area. Far from meaning that you’ll get all of the custom, it typically means that there is no custom. The fewer enterprises in a district, the more the economy suffers. There are fewer jobs, fewer opportunities. People won’t travel to the area and tourism will suffer.
Customers Desire Choice
Customers like to have choices. In a world where online shopping is becoming the norm, people expect a choice. They type what they want into Google, and they are presented with multiple options. They are free to compare products and prices, look at services and stores and decide which they want to buy from the comfort of their sofa. They want the same kind of choice from their high streets.
If a customer searches your competitors store looking for a product that they need and they can’t find it, they won’t decide to buy something else or just to go home without it. They’ll look for somewhere nearby where they can find the same product or something similar. This desire for choice is perhaps the primary reason that similar stores can succeed in the same location.
Benefit from Competitors Advertising
Your competitors invest in massive marketing campaigns. They branch out and look for a new audience. They increase their range or start advertising in new places. You benefit from this marketing, without spending a penny. It brings more people that are interested in your store to the area. If your competitor falls short on their promises, or run out of stock, you are there to pick up the pieces.
A Chance to Keep an Eye on Them
You don’t want to become a spy that spends more time worrying about the competition than developing your own business. But, monitoring the competition, being aware of what they are doing, what’s working and what isn’t, how they are spending their advertising budget and any price changes that they are making can be crucial to your development. It’s easier to keep an eye on them if they are over the road.
To Promote Friendly Relationships
If there’s another business owner that understands what you are going through, it’s your direct competitors. They have many of the same problems and concerns, your staff and there’s work similar hours in the same conditions, you all understand each other. Competition doesn’t have to be negative. Having them nearby can give you a great way to build friendly relationships and increase your support network.
To Be Close to as Many Customers as Possible
When choosing a location for your business, one of the things that everyone will tell you is to find your customers. Well, if you’ve got competition, they’ve already done that for you.
Even without finding your target market, most businesses try to open where they have access to as many passing customers as possible. This is often why most companies end up in central locations, strip malls and large shopping districts.
The Closer You Are The More You Push Each Other
One of the most significant benefits of having competition is that it pushes you. It forces you to try harder, to never grow complacent and to always be looking for ways to improve and to grow. If your competition is nearby, you’ll have to push each other, you’ll need to take risks, and you won’t always be able to play it safe. This can be a massive bonus for your business.
