Given the capitalistic nature of our society, it only makes sense that your business will be competing against other similar companies that sell similar products and services. This natural competition is supposed to be good for the consumer, because it helps to keep the prices within reason and it offers the consumer a choice. This choice helps to move innovation forward, as each firm is constantly working to one-up the guy next door.
In this way, when you choose to start your own small business, you have ask yourself a very simple question: why would the average customer choose to buy from you over your nearest competitor? What is it about your particular business model or product line that would entice the undecided consumer to enter your store rather than the guy across the street?
For coffee shops, the difference may be in the quality of the java being served. Maybe you have a cafe that offers free Wi-Fi Internet access, whereas the coffee shop down the street does not. Maybe you have a better environment with more pleasing music playing the background. Regardless of how you choose to approach this concern, you have to find a way to separate yourself from the pack. You need to find a competitive advantage.
This doesn’t mean that you necessarily have to have a completely unique product line. There’s nothing inherently wrong with entering a market that is already occupied by other firms, but you do need to bring something unique to the table. What problems are you solving for your customers that your competitors do not?
