Do you think Chicken Inn will lose sleep because one of its employees has left and started a similar business to theirs?
Do you believe Pick n Pay will lose sleep because a former manager has opened a supermarket? THEY DO NOT GIVE A DAMN; WHY? It’s simple, as soon as their employees leave these brands, they are like a fish out of water.
Their employees are not their direct competition in any way because they won’t be playing in the same league. The actual reason is these companies have invested a lot in their brand over the last years to the extent that people buy their brand, not the product.
So every customer feels safe dealing with a recognized brand; they trust that whatever they will get from these big brands is of quality standard. How did they manage to grow those brands? It is all because these companies invested a lot o money in marketing; hence the employee who will start a similar business has to support the same number of years or effort to be where the Chicken inn is today.
Even if he makes a significant investment in the market today, his newly established company will never be an instant hit because it takes time for customers to accept brands.
They have also provided quality service standards over many years.
Building a trusted brand will help you fight both External and Internal Competition.
The reason why your business loses market share whenever a former employee leaves to start a company to directly compete with yours is that you are not investing in building a brand.
I’ve sat down with many business owners whose phones ring 20 times an hour because they horde all the information.
I once went out to lunch with someone, a mentee, whose phone would constantly ring with requests for little things like airtime. And when I asked him why his phones were ringing constantly, he highlighted that he does not delegate even though he has over 10 employees.
His thought was that by delegating, employees would learn crucial skills that would make them leave and become competitors to his business.
My lesson to him was simple and it applies to you as well; As a leader of a company, you should focus on two things; Branding and Leadership.
If you build a strong brand, competition becomes irrelevant.
Invest in building your brand.
My recommendation is that you should invest at least 10% of your revenue back into marketing, I call this the business tithe.
If your business makes $10, invest $1 into marketing, if you make $100, put $10 back, if you make a million, put 100 thousand back in marketing.
Big brands are big because they invested in their brand.
Insightful! Thank you for this masterpiece.
Learning sales has never been better!