By Ian Lamont

There are people out there who are plotting right this minute to eat your business for lunch. They are plotting to do business faster, better and smarter. They are plotting to take your customers and steal your revenue. They are plotting to put you out of business.

So what do you do?

You make sure you know who they are and what they are doing. Otherwise, one of the last things you’ll be uttering is this failing entrepreneur’s lament: “Where did they come from?”

It is absurdly obvious, isn't it? Stay abreast of your market, your competition and all that is happening.

Of course, you may be one of those “special” business owners who thinks your business is so unique, you don't have any competitors. If this describes you, read the quote in the above paragraph because you will be saying it very soon.

So why don’t most leaders in business make staying abreast of their competition and market a standard practice? Ego and pride are two reasons, as many owners believe they are the smartest and the best.

Remember this quote from the indefatigable Satchel Paige: “Don’t look back; someone may be gaining on you.” In business, if you are not looking back - and all around you - to see who is gaining on you and who is blowing by you, you are an egotistical and prideful fool.

Even if you do study your competitors, I would bet almost all of your time is spent concentrating on their weaknesses, not spending any time on their strengths or what makes their business successful.

Why? Because you think they're stupid (which is just the same as thinking you are smarter and better).

Think about this: Your competitors think the same way you do. They think their business is stronger, better positioned, will grow faster and in the long term be more successful. So why wouldn’t you want to learn all about them? Park your ego and pride and stop being part of the business culture of vilification.

Instead, value your competitors for their boldness of vision, their ability to execute and implement, and for their organizational prowess.

Step back and assess your competitors. If you do this fairly and objectively, it will help focus your efforts in a meaningful and productive fashion, as well as provide some valuable insight that will make your own business stronger.

Here’s how to do it. First, take a look back at the last 12 months. What are the smartest things your best competitors did?

And don't just ask yourself that question. Ask your senior management team, your shared customers, your board (if you don’t have a board then put together an advisory council), even other business leaders.

I would suggest you develop a questionnaire and have each person respond in writing. The questionnaire should be as detailed as possible, knowing that some people may not know the answers to every question.

Don’t have the time? Then hire a consultant to lead this project. If done right, it will have an enormous ROI.

After assessing the last 12 months, examine your results. Are your competitors doing things you considered and rejected? Have they launched initiatives you hadn't thought of? What impact are your competitors having on your business – lost customers, loss of revenue, alternative revenue projects that up to now are a lost opportunity for you? What is it about your competitors that created conditions for their business wins against you?

The next step on the ladder of self-examination is to ask: What is it about your competitors' organizations that enable them to have any advantage over you in the marketplace? Virtually every business has competitors who are doing something better in a particular area than they are.

For example, take the HR side. Are they attracting better people, stealing good people from you and others? Do they pay better, have better benefits? Do they have better mentoring or leadership development programs? Is their operating culture better, more productive, healthier for their employees?

Or look at marketing. Are they faster at bringing new products to the market? What kind of promotional support do they give their products? What vendors do they use and where and why are their products better?

Go through the same exercise in every integral business area and identify where your competition is stronger. Then put together a detailed strategic plan to improve your competitive abilities and your competitive performance against them.

One other way to learn from your competitors is role playing. Become your competitors. How do they view you? What do they do better than you? Can you identify what strategic steps they might take next against you?

Spend some time studying who wants to eat your business for lunch. You might just learn something.

Ian Lamont now works with his two sons at The Lamont Group (TLG). Recently retired, Ian spend the last 18 years of his career as a CEO of multimedia and energy businesses. At TLG Ian's focus is assisting individuals and organizations to succeed and grow. Ian can be reached via e-mail at ian@lamontgroup.biz or by calling 562-544-5822. For more information on TLG go to: www.thelamontgroup.com. Lamont's column reflects his own views and not necessarily those of the Long Beach Business Journal.