How I Built a Nationally Recognized Brand in a Niche Market By Welcoming Competition, Not Fighting It
Here's how you should view your competition when your business operates in a narrow category.
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Key Takeaways
- When everyone in a niche market gets along and does well, the whole category benefits. Treating each other with compassion is the best way to keep things friendly.
- You have to choose your battles more carefully in close quarters. Not all competitors have the same idea of what constitutes friendly competition.
- Minor competitive transgressions can sometimes serve as free publicity, but serious harmful actions (like tortious interference) require firm enforcement of boundaries.
If you’ve ever owned a pet, you know they’re different from animals that live in the wild. Out there, competition is fierce because every day is life or death. But at home, everyone has to play nice and get along.
Running a business in a niche market is a bit like being an indoor cat. There’s still competition, but if you’re too aggressive towards the other players in your space, it makes the space uncomfortable for everyone.
Conversely, when everyone in a narrow category gets along and does well, the whole category benefits. Think of it this way: Guests want to visit the house where the cats compete by doing tricks for treats, not the house where fur is always flying.
That’s why I’ve always welcomed healthy competition in the roof restoration industry, which my company Roof Maxx disrupted by offering a cost-effective and eco-friendly treatment for asphalt shingles. There’s no point in being threatened by others, as long as we’re all behaving ethically and responsibly in our shared space.
Below, I’ll tell you more about what I think that means — along with how it benefits all parties and how to recognize when competition isn’t friendly anymore so that you can take proper steps to protect yourself.
Related: I’m Extremely Competitive — Here’s How I Keep It from Becoming a Problem in my Business
Why a rising tide raises all boats — especially in smaller ponds
Let’s put aside the pet metaphor and talk about a concrete example from my career. Most homeowners I talk to aren’t even aware that roof restoration is an option for them. That’s how small the category is, especially when you’re serving the residential market.
Roof Maxx has grown into a national brand. Our dealers collectively generate more than $200 million per year in total revenue through roof repairs, maintenance, cleaning, restoration and replacements. Our represents a different kind of roofer: One focused on helping property owners avoid costly roof replacements by giving them real options. In fact, roughly 80% of roofs being replaced nationwide could be saved, often extending their life by a decade or more.