Friend has set up rival business

[Solo2]

An acquaintance got in touch, after some yrs of little contact, as she was setting up her own business - very similar to mine but with a different 'client base' (don't want to go into detail about what this is but it's a professional business). I gave her loads of ideas about starting and improving her business, based on my own yrs of experience and assumed she wouldn't be a competitor because our businesses offered similar things but to different people.

However, it's become clear that she's actually now a direct competitor and is tapping into my client base as well as having the option of an additional one too (where she has the real experience). Not only this, but she is probably shortly moving her business right into my locality and making links with my 'connections' - having learned so much from the advice I gave her.

She's chosen a name that's v v similar to mine, for her business too.

Either she is v naive about becoming my main local competitor or she is extremely clever and manipulative because she is still acting as if we're great friends and has no sense that she might pose a huge threat to me and my livelihood.

In the clear light of day, I suppose I have to accept that there's little I can do. But what I'd really like is to hear some comments from people about how you've managed a similar situation - even if it's just with an unknown competitor setting up nearby?

I suppose my attitude has to be one of - well I'm more experienced and have longer lasting connections and should trust in this and do some more marketing.

But my current mind set is one of huge anxiety and fear that over the next few months and years, my own business will be adversely affected by her competition. I also feel betrayed and also confused as she certainly isn't acting as if she's suddenly set up in direct competition to me.

Could she really believe that I'm so totally secure in my business that I wouldn't see her as a threat? However, she initially lied to me and said she wouldn't be targeting the same client base as I am.

All this is of course happening within the current economic climate - not ideal for anyone in business.

Any thoughts/ ideas and advice?

I reckon she sees you as business research, and not a friend, and that she most likely IS after your client base. It is easier to take over an established client base, than build a new one. It happens a lot in business. It is much easier to take over somebody elses clients because you dont have to convince them they need your product, they are already using such a product/service, all you have to do is convince them yours is cheaper, or better.

You need to go into damage limitation mode and stop discussing business with her, unless you think you could benefit from her ideas too.

Keep a close eye on her, see how she markets her products/services, how she sets her pricing, etc.

Can you be more assertive and move in to her target market too, prior to her arrival on the scene?

Only YOU can look out for your livelyhood, she will not.

Thanks. I have thought about the possibility of beginning to move into her target market. Part of my reaction is to 'fight back'!

When we last saw each other for lunch, I noticed how she avoided twice answering my question, "So how is business?" and we then talked more about personal stuff. It was only as I was leaving that she stumbled over answering my question about her target market and changed from admitting it was more my target market now and flipped it back to the original one I thought she was targeting. It was clear that she was lying.

I think it's too late now to do anything to stop her, as I've already shared so many ideas with her and she's 'taking off'. She doesn't really need me anymore.

Should I broach the subject of her setting up in direct competition to me or will this sound weak and pathetic? Should I, alternatively, act as if she's no threat at all and all is well with my business? Unfortunately, just before I realised she's now become a direct rival, I was talking to her about a drop off in business.

How can I re-vamp my business and re-market my product, as someone who's been around a long time (about 17 yrs now), when it may be that her 'fresh blood' (she's also 7 yrs younger than I am) is of more appeal? Actually, I think that my longer experience is probably a huge asset but also, people can want to turn to something new, after a while.

A horrible, bitchy part of me actually wants to drop subtle negative remarks about her to people that might then spread out along the 'grapevine' - but I realise this is just nastiness and I'd be better served putting all my energies into revitalising my own business.

negative is just that
surely its better to drop hints that she got her ideas from you
and that no more will be forthcoming
so if clients want real development they are better off with you than her
play to your strength - the information provider
and be open about having helped her onto the ladder to see if she is really good enough tto be a real challenge to you
the good money will follow the source of the good ideas
positive
not negative

Yes. You're right, I know, Talkingpeace.

Can anyone else share their own experiences of a rival business setting up close to your own and how you handled this and what the outcome was?

I'm an accountant
my LIFE is nicking clients off other people and passing the carp ones on to other suckers
do it with a smile
yesterday is as past as the Crimean war

What kind of business are you in Solo?

Do you have regular work from clients - or just repeat business?

I'd start talking to clients - loads of customer care. Talk to Enterprise for any grants around to maybe revamp your brand.

But I'd act as if nothing was the matter between you - keep it cool though and maybe you could give her some bum steers?

And be double alert to her comments and keep on your toes as to what she's up to.

Talk about how much you have helped her set up, how much support she has needed, how much you enjoy coaching and supporting younger/less well qualified/less experienced (Competitors is the wrong word....umm mentoree is wrong too but you know what I mean) to all your customers

I know that in my own work I can become a tad complacent - I have some loyal clients and an excellent track record, but in all honesty I can advise other people to do things that I know will work but which I haven't actually implemented in my own area (sometimes becuase I haven't needed to employ those marketing strategies, sometimes because I've just been too busy, or too lazy).

Could you paraphrase the advice you gave her and develop and implement your own improvement plan / market plan / development plan.

Use your current anger to galvanise your business and perhaps branch out a little into her territory.

And market yourself as a succesful business consultant too - the better she does, the better it reflects on you.

Forget about her.

There will always be rivals. You can do nothing to stop that. Badmouthing her will make clients think badly of you. It is very unprofessional.

Focus on your business. If things have slowed - why. What can you do, what can you change? Where are your areas of growth? Is yours the sort of business you could franchise? Is yours the sort of business there are trade shows for?

You need to grow your business. She is no more relevent than any competitor. The market is out there, it is up to you to carve out your slice.

Oh - and she wasn't your friend. She was using you. You were too open. A good lesson for the future.

This is exactly the kind of thing that I wanted to hear and is v helpful. Yes, I've become complacent as I'm well respected and haven't had to try too hard to get customers and have been in business for about 14 yrs. So it certainly could be time to re-vamp my product (which is actually a kind of 'service' rather than tangible product) and branch out in what I do a little.

I could certainly take a small proportion of her 'clientele' whilst not stepping outside what I'm qualified to do. She can take all mine however, plus her own specialist area too. So I guess I need to market, advertise and keep in better connection with the sources of my work.

One issue for me is that I've always prioritised my DCs and often take time off work to be there for them on school hols and also finish the 'paid' part of my work once school is out. My rival has support other than herself for childcare and I suppose her DCs are also more used to more time away from mum than mine are.

However, my DCs are older than hers and I could also start to compromise my ideal as a full-time mum as well as a f/time business woman too. I guess it's all about attitude and being able to feel OK with less time with the DCs because I'm actually investing in them by working harder.

I think this rival poses as a greater threat than others have been because she's going for it full-time whereas past competitors have done only a tiny bit of p/t work and also because she's good at what she does and has a similar backgroudn to myself - only she was employed for much longer than I was and so has more recent connections with her past employers and a network there. I've been f/t self-employed only for 10 yrs and have fewer recent links with a network. i could do more to change this.

Thank you for helping me to keep thinking positively and i totally agree that my silent thoughts of revenge are just going to spread negativity that might then backlash on me too.

There are only 24 hours in any 1 day. So there's only so much she can physically do/take - you'd still get a slice of the market wouldn't you?

or what if you both joined forces - you could both clean up the market together?

Thanks TracyK. It could have worked really well if she'd stuck to the part of the market that she'd originally told me she was aiming at. I was already sending quite a bit of work her way, from my own network and indeed have just sent her some more, as it's outside my expertise but is within her main area.

However, she's now aiming at my own market too and from the slight but sustained drop in my business recently, it MAY be that it's because of her. So it looks likely that there's insufficient business in my own area to allow two of us close to each other locally to have as much work as we need.

Anyway, I'm working on keeping positive and trying to find some time (despite having DCs f/t all this week on half-term) to generate more business and do some advertising and marketing.

Do not send her any more work. Any work you hand her is funding her attack on the rest of your client base. I'm all for acting like a professional but you will have to be as ruthless as she is clearly prepared to be if you want to survive this.

Can you not acquire the skills required to do that work yourself? Could you work in partnership with someone else to do the work? If you know all about it, even advised her how to handle it, I don't see how there isn't something you can do to target that sector?

Wingandprayer, I only advised my 'rival' generally how to start and improve her business as we were in closely connected sectors but not (as I thought) tarketing exactly the same market.

I don't want to say exactly what we do but it's a professional service rather than selling a product and both of us were previously employees working in our distinct specialist areas. I continued in my specific area when becoming self-employed and she's continued in hers but has also stepped into another specialist area too - the one I do.

I can, to some extent, do what she's done, although for most of the work, not immediately and not without further training. She really shouldn't be stepping into my area, for similar reasons but wouldn't be the first to do something like this.

It's a bit different if we were just selling a material thing, I guess.

My plan was to help her out and my expectation was that she'd reciprocate as work would come her way sometimes that was misdirected, as it does to me and then she'd send it to me. But instead, I've continued to sned work her way and she's taken this and also some of mine.

Anyway, I'd better just reserve my energies for increasing my own business and branching out where possible and legitimate.

Thanks for the thoughts