As a business leader, it is a good thing to be competitive. It allows you to enhance your performance. Having a rival will also help you commit to achieving your goals, hitting your targets and therefore boost overall performance.
However, before you can pick a business rival to compete with, it is crucial that you first understand the disadvantages of competition and the risks involved. Being too competitive may cause you to make irrational business decisions and take more risks. This could end up hurting your business in the long run.
These are 3 main tips you can use for healthy business rivalry while also helping you to avoid risky moves.
1. Commit to your business principles
You can boost your focus by finding someone to compete with. You are better able to achieve your goals which will ultimately take your business to the next level. The downside is that when the competition is fierce, you may have a win-at-all-costs mentality.
This may cause you to put aside your business principles and “play dirty”. However, you may ruin your businesses reputation in the process and damage business relationships that are crucial to the success of the business.
Take time off as a business leader and think about what is important as well as the business principles.
2. Take regular breaks to think
Rivalry will make your business perform more efficiently since you have the motivation to work even harder. However, note that the eagerness to be the best may also contribute to your business’s lack of success.
This is especially the case when you end up making impulse decisions. One study proved that business leaders are more prone to make reactive decisions instead of being more cautious in their decision making.
However, as a smart business leader, you can avoid this by performing critical thinking. Think about different viewpoints, and consider the cost and benefit of your decision.
3. Do not take unnecessary risks
Having a rival that you want to beat not only causes you to make irrational and reactive decisions but it can also cause you to take unnecessary risks. This could jeopardize the position of your business in the market.
An example can be seen clearly when it comes to football. If a team views an opposing team as a high risk, they are more likely to have more offensive strategies and lag behind on the defensive and risk aversion strategies.
Many business leaders will instead of focusing on avoiding the risks, will dive into a strategy without performing proper market research.
Being a good business leader means finding the right balance between controlling your emotions and competing with your business rival. Making the wrong move can slowly cause your enterprise to crumble.
The best way to avoid unnecessary risks is to employ critical thinking. Take regular breaks and engage your mind in a rational conversation. In this way you will be able to remain competitive and still make the right business choices.