If You Want to Survive, Find Ways to Compete With Your Own Business Eventually, a competitor will come and beat you at your own game. Provide your own internal disruptions to stay relevant.

By Mark Cenicola

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

In technology, it's only a matter of time before a startup comes along and does what you do better, faster and cheaper. You need to build enough success with a product that produces strong cash flow to provide you the opportunity to find your next cash cow.

That limited window of opportunity is one of the primary reasons Warren Buffet doesn't like to invest in technology companies, and it's the same reason Google continues investing in a myriad of projects unrelated to its primary business. It's only a matter of time before companies get disrupted and find themselves fighting for survival.

Related: Worried About Your Competition? Worry About This Instead.

Good startup entrepreneurs look at this constant change as part of the success formula, and the great ones look to disrupt their own businesses before someone else does. Here's what we learned over a 15-year period of disrupting ourselves:

Make sure you're in the right business. Our first business model was a failure -- we launched our own online classified ads website during the dot com bust. We couldn't raise any investor money and the business wasn't generating enough revenue for us to survive. We quickly realized that we wouldn't make it, so we took our experience developing our own website and used it to begin doing so for others.

Very few startups pick the right business model, technology, employees, or for that matter, anything the first time. Giving yourself the opportunity to experiment and fail will help you gain the experience necessary to discover where you can be successful and provide an opportunity to pivot quickly without shutting down the company.

To be successful and survive, we had to shift from our initial business plan. Since then, we've had to disrupt ourselves twice more and are already planning the third.

Related: How to Deal With Your No. 1 Nemesis

Change the way you monetize your product. We were successful with our model of selling websites for eight years, until the Great Recession of 2008 hit and customers could no longer afford to spend $5,000 to $15,000 on their websites.

During the recession, we introduced a website leasing program. This allowed our customers to get the features they needed affordably, since banks wouldn't finance a website and they didn't have access to other credit. Making this change hurt because we no longer received a several thousand dollar payment up front. We took on a lot more risk and essentially gave up our previous business model. Fortunately, the leasing program was a hit during the recession and we actually grew both revenues and profits during the downturn.

If you can find creative ways to sell your product such as making it ad supported or offering financing for it when others won't, you can be successful even though it deviates from your traditional sales model. You can also give away something you used to monetize, providing an opportunity to make it more profitable. Apple is a great example: it gives away its smartphone operating system and applications and in turn sells more hardware.

Develop a killer feature. Is there a feature you can add to your product that simplifies the lives of your customers in a unique way even if they aren't specifically requesting it? Making the decision to invest resources that could disrupt other high priority items from getting done may allow you to find that one big thing that can be a driver of future growth for your company.

For long-term success, you have to actively look at objective ways to compete with yourself. If you're not looking for the next way to disrupt your own business, it's only a matter of time before someone else does.

Related: 4 Ways to Deal With Competitors

Mark Cenicola

President & CEO, BannerView.com

Mark Cenicola is the president and CEO of BannerView.com, developers of BannerOS, the software that helps companies turn their websites into more powerful business tools. He is also the author of the book The Banner Brand – Small Business Success Comes from a Banner Brand – Build it on a Budget.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Business News

Woman Allegedly Fired for 'Theft' After Eating a Sandwich That Was Leftover From a Meeting

Gabriela Rodriguez worked as a cleaner at Devonshires Solicitors in London for two years.

Business News

A 29-Year-Old CEO Quit Microsoft To Build His Startup — And Just Scored A Deal on Shark Tank

Aabesh De tapped into a niche need during the pandemic and founded Flora, a houseplant care startup.

Growing a Business

The Owners of This Texas Farmers Market Took a Big Gamble. Here's How It Paid Off Bigger Than They Dreamed.

A Texas farmers market educates customers about the importance of shopping local for a healthy lifestyle and an even healthier small business community.

Business News

A Billion Dollar Startup Is Trying To Resurrect A Woolly Mammoth — And You Can Watch It Happen

Filmmakers will go behind the scenes of billion-dollar startup Colossal Biosciences, which uses genetic engineering for de-extinction projects.

Employee Experience & Recruiting

Avoid Costly Hiring Mistakes With These Five Essential Tips

From using an AI-powered video platform to posting more precise job listings, these strategies will help hiring managers spend less time, energy and money finding the right candidates.