I think competition gets a bad rap.
There will always be other businesses offering something similar to what you offer. That’s not a problem. That’s just… business. I mean, if Starbucks and Dunkin’ Donuts can co-exist down the street from each other, so can you and your competitors!
And honestly? I think it’s a good thing. When multiple businesses serve similar needs, clients can choose the one that best fits them. The marketplace gets healthier. And you? You get pushed to keep showing up as your best.
That’s what I want to dig into today: three real benefits I’ve experienced from healthy competition, and how you can shift the way you think about the other businesses in your space.
But first, let’s talk about what I mean.
What Does Healthy Competition Actually Look Like?
Healthy competition isn’t about trying to outdo every woman in your industry or playing dirty to “win” clients. It’s about acknowledging that other businesses in your space are colleagues who serve the same community, not enemies to defeat.
Your mindset is the difference between healthy and unhealthy competition. When you’re operating with a scarcity mindset (“there’s not enough to go around”), competition feels threatening. When you’re operating with an abundance mindset, it can feel energizing.
I didn’t always see it this way. When I opened my second preschool location on a street that already had two other childcare centers, I was a little scared. But you know what happened? All three of our businesses continued to grow because each of us brought something different to the table. The presence of other providers actually validated the market. Families in that area were actively looking for childcare, and having options brought more people to our street, not fewer.
That experience changed how I think about competitors entirely.
Now, let’s get into why this perspective matters for your business.
Benefit #1: Competition Pushes You to Improve and Innovate
When you can look at another business with a healthy mindset, it challenges you to find creative solutions and keep improving your own work.
Think about it this way: if I were the only shoemaker in the world, I’d never see what other shoemakers are doing. I’d just keep making the same shoes I’ve always made, with no reason to get better. I might not consider making the insoles more comfortable or raising the heels a little. If my shoes were the only ones around, I wouldn’t have to make any improvements.
Competition exposes you to different approaches and ideas. Not so you can copy them, but so you can observe alternative solutions to the same problems you’re solving.
This visibility unlocks creativity by pushing you to ask:
- What makes my approach different from others in my space?
- How can I take what I’m already doing and make it even better?
- What unique value do I bring that nobody else can replicate?
I always say the only competition I have is who I was yesterday. And that’s true! But I also want to make sure I’m not falling behind on industry trends or missing an opportunity to serve my clients better.
I’m always researching what’s happening in the coaching industry. What are other coaches offering? What gaps do I see? What are women entrepreneurs telling me they need that nobody’s providing? That curiosity led me to create programs like The Collective because I saw that women in Annapolis didn’t just want another online community. They wanted to be in the same room together, especially after the 2020 pandemic.
That kind of innovation doesn’t happen in a vacuum. It happens when you’re paying attention to your industry with open eyes.
Benefit #2: Competition Proves Your Market Exists
When you discover other people doing work similar to yours, that’s actually good news. It means there’s a real demand for what you offer. If nobody else was doing anything like your business, it might mean there’s no market for it. Competition is market validation.
Think about retail parks. It’s not a coincidence that you see furniture stores clustered together. They know that shoppers who are buying furniture want options. By being near each other, they all get more foot traffic than any single store would on its own. The same principle applies to your industry. More businesses serving your audience means more people are aware that this kind of service exists, which means more potential clients for everyone.
Beyond the market validation piece, seeing others succeed in your field can light a fire under you. When approached with the right mindset, that drive inspires you to set higher goals and push yourself to reach them.
It’s a natural part of being human, especially for high-achieving women. Being able to look at someone’s success and feel inspired rather than defeated? That’s healthy. That’s growth.
Competition also keeps us focused. Instead of chasing every shiny new business idea (we’ve all been there), seeing others in your niche succeed can remind you of why you chose this path and the impact you want to make.
And here’s something I don’t hear people talk about enough: healthy competition builds resilience. We’re not always going to be the best, and we might not always hit the mark, but when we stay focused on who we want to be and how we want to show up, we can recalibrate faster when things don’t go as planned. We learn from the experience and try again with new insights.
Want to figure out where your business stands right now and where you should focus your energy? Grab my free Strategic Planning Wheel. It’s a quick way to identify the areas of your business that need the most attention.
Benefit #3: Competition Opens Doors for Collaboration
This might sound contradictory, but I love healthy competition because it creates opportunities for collaboration.
When we observe what others in our field are doing, we gain insights into industry trends and what our shared audience needs. When we talk openly about those observations, we raise the bar for the entire industry.
I’ve been part of a networking group for early childhood providers for about 20 years. Twenty years! We regularly share what we’re doing, what families are experiencing, what’s working, and what’s not.
Nobody in that group is coming from a place of “I’m trying to steal your families” or “I’m going to undercut your tuition.” Instead, we ask:
- What are others in our industry doing that’s working?
- How can I stay aligned with trends while being true to my values?
- If something’s not working for me, what can I try instead?
- If something is working well, how can I share that to help the group?
That collaborative spirit recognizes something powerful: when one business improves, it raises the standard for everyone else. Ultimately, that benefits our clients and our communities.
Some of my closest business besties started as business competitors. Now, we refer clients to each other based on who’s the best fit. We collaborate on projects together. We support each other through the hard seasons. That would never have happened if I’d seen them as threats instead of colleagues.
According to Gusto’s 2025 New Business Formation report, women now launch nearly half of all new businesses in the U.S., up from 29% in 2019. That means the landscape for women entrepreneurs is growing rapidly. There’s more room than ever to connect, learn from each other, and grow together.
How to Put This Into Practice
Shifting from fearing competition to using it as fuel doesn’t happen overnight. But it does start with a few intentional choices.
Get curious about your industry. Next time you find yourself on a competitor’s website at midnight (we’ve all done it), try shifting your energy. Instead of “why is she doing better than me?”, ask “what can I learn from this?” Look at what others are doing with genuine interest. Notice what resonates and what you’d do differently. That’s not stalking. That’s smart business.
Know your own strengths. After you’ve looked around your industry, come back to you. What unique skills, experiences, or perspectives do you bring? What do clients specifically tell you they love about working with you? Your personality, your story, your particular approach… nobody else has those. Lean into what makes you, you.
Reach out to someone in your space. Join an industry group and meet other people who do what you do. I’ve seen referral partnerships, co-hosted workshops, and deep friendships grow from exactly this kind of first step.
Let others’ wins inspire you, not define you. When someone in your field achieves something impressive, let it motivate you to pursue your own goals. Not make you question your worth. Your journey is yours. Your definition of success is yours. Those are not up for comparison.
Celebrate other women’s success out loud. When someone in your industry lands a big client or launches something amazing, cheer for them. Share their post. Send a congratulatory message. Their success doesn’t shrink what’s available to you. It actually expands what’s possible in your field.
Competition Is Inevitable, So Make It Work for You
Healthy competition and strong community aren’t opposites. They’re partners.
The businesses I admire most have figured out how to stay aware of their competitive landscape while building genuine connections with the people in it. They use competition as fuel to better themselves, while also creating space for collaboration and mutual support.
Competition isn’t going anywhere. But how you respond to it? That’s entirely up to you. And I’m betting you’ll choose to let it make you better. I’d love to hear from you. How has healthy competition shown up in your business? What did it teach you? Come share your story in the Leading Ladies Facebook Group. More than 7,000 women are in there cheering each other on, and we’d love to welcome you.
