7 Ways to Outsmart a Copycat Seven practical ways to outthink, outlast and outperform imitators.

In a world where information is available at our fingertips and almost every idea has been explored, finding a truly unique business model is rare.

It's inevitable that as you enter new products or markets, you will take inspiration from existing businesses to develop your own. We've all done it, whether intentionally or not. After all, why reinvent the wheel? Any of us who have started a business have likely been the newcomer on someone else's turf, prompting them to adapt to the new competition.

For the most part, this is how business works. You evolve an existing idea, add your unique style, and hopefully find your own niche. Ideally, this leads to healthy competition, where each company has its own unique selling proposition that resonates with its audience. Competition, in this sense, is beneficial. It promotes fair pricing, encourages innovation, and offers greater choice. In contrast, a lack of competition fosters monopolies that have little incentive to innovate or improve.

There are instances however, where you encounter a different type of competitor: one that refuses to innovate and instead chooses to replicate your business model. A copycat. They copy your sales tactics, mirror your marketing messages, and create an almost identical product. It's a feeling that never really gets easier, no matter how many times it happens. Suddenly, two businesses are vying for the same space, which may have only been large enough for one.

This form of competition benefits no one. It drives down market share for both businesses and with no clear distinguishing messaging or strategy, forces them to compete primarily on price. At first glance customers may appear to win. But eventually, everyone loses. Price-based competition squeezes profitability, reducing investment in innovation and new product development. To recover margins, businesses often resort to cost-cutting, which negatively affects the quality of the product or service. Ultimately, it is the customer who suffers.

While dealing with a copycat competitor can be frustrating, there is a way out. Here are seven tips to keep in mind:

1. Don't Compete:
   Remember, you're not competing with the copycat, they're competing with you. Their entire strategy revolves around copying your moves. If you focus too much on them, you dilute your strategy and reduce the differentiation between your businesses. Stick to your game plan and let them follow. This means they'll always be a step behind.
2. Double Down:
   If someone is copying you, it's a sign that you're doing something right. Use this opportunity to reassess your strengths and reinforce them. By doubling down on your core competencies, you highlight the differences between the substance of your business and theirs, making it harder for them to replicate.
3. Evolve:
   It may be time for a change. Often, when a competitor copies you, it's because you've been successful for a long time with the same approach. Shaking things up can be disruptive for the copycat. They've built their strategy around emulating your old one, so they won't be able to adapt as quickly to your new direction.
4. Understand Them:
   You probably know this rival better than any other. As they're mimicking your strategy, they'll repeat your mistakes, but without the lessons you earned making them. That means you can predict their next move. Copycats usually succeed only by offering a lower-priced product, often of inferior quality. Understanding this gives you a significant advantage.
5. Don't Be Threatened:
   A copycat strategy is inherently weaker. It signals that the company lacks originality and confidence in developing its own approach. Copying can only replicate the surface (products, messaging, etc.), but not the substance behind it. What wins deals is not flashy marketing but the strength of the company and its team.
6. Be Flattered:
   Instead of feeling annoyed, take it as a compliment. Their decision to replicate your business shows that they envy your success. By copying you, they acknowledge that you do something better than they do.
7. Protect Your IP:
   This is one area where you need to be vigilant. Knowing that their approach is to copy your products and designs, make it as difficult as possible for them. Be careful what you share online, especially photos that make imitation easy. Ensure your intellectual property is well-protected, and that confidentiality agreements and non-competes are in place with employees and suppliers. Although IP can be difficult to enforce in some jurisdictions, taking precautions can deter copycats from the outset.

By following these seven tips, you'll be better equipped to navigate the challenges posed by a copycat competitor and come out on top.

In the end, the smartest move isn't fighting the copycat, it's reminding them that they'll always be one step behind.