I’ve always had a view that there’s no such thing as competition. Some people are protective over their business, their connections, their relationships or their IP, and I guess for some, competition is a natural part of business. It’s also a big part of life. I’m a competitive person, just ask my wife… She won’t play Monopoly with me anymore, but when it comes to business, ‘formal competition’ doesn’t exist.
When I was growing up, there was no such thing as a participation medal and I won’t get drawn into a debate on this.
It strikes me that more and more entrepreneurs, leaders, and even psychologists are beginning to see the value of a different approach to straight up competition and that is: collaboration over competition. Instead of focusing on outperforming everyone else, what if we looked for ways to work together and harness each other’s strengths?
What do I mean? I can give you two examples:
1. There is a marketer in Lincoln called Tommy Atkins. He’s VERY good! He has sent me leads and doesn’t see us as competition. We go out for dinner and we talk about business. He doesn’t see competition either. As a result, we’ve invited him to speak at our events.
2. Another local firm: Shooting Star. Run by a fantastic marketer – Kate Strawson. Someone else who has spoken at our events. She also invites us to her charity events and networking meet-ups.
A traditional view would be that we’re competing with each other. None of us see that.
In this article, I plan to explain my philosophy further and go into why collaboration tends to produce better, longer-lasting results and explore the psychological underpinnings of competition, both the good and the bad.
The Psychology of Competition
The ‘Fight or Flight’ Instinct
I’m not a fan of traditional networking. When I say this, I mean the sort of meet up when you have to stand up and do a pitch in an environment when people only go to sell, not to buy… BUT at one such networking meeting, I met someone with the same philosophy as me – all about relationship building.
Now, the thought of networking normally triggers my flight instinct and if it had, I wouldn’t have met Dan Temple. He’s one of the only people I know who has crashed a helicopter and lived to tell the tale… When Dan and I get talking, we go off on all sorts of tangents but we always educate one another. Dan’s speciality is helping others to understand why we do what we do He helps people (and teams) become more productive and he does this because he understands the way that human brain works. There is a point to this… His explanation to me when talking about competition (and the human body); Human beings are, at our core, wired for survival.
He explained that, when you think of it, our ancestors competed for resources, food, shelter, and territory, which has shaped our physiology and psychology for thousands of years. This survival instinct can manifest in the business world as a ‘fight or flight’ response, when faced with challenges or perceived threats, we sometimes believe we must do whatever it takes to ‘win’. This might mean aggressively undercutting prices, withholding information, or turning every project into a battle for dominance. Business can be tough at the best of times, so when others enter the same market, fight or flight can take hold.
Dan and I now collaborate on projects for mutual benefit. Dan is the compere for our events bringing his confidence and energy to events.
Zero-Sum Thinking vs. an Abundance Mindset
Here is what I’ve learnt: A lot of competitive behaviour stems from zero-sum thinking, which is the idea that there is a finite pie of opportunities or resources, so if someone else gets a slice, yours must inevitably shrink. This mindset leads to fear, guardedness, and sometimes unscrupulous tactics in an attempt to ‘get ahead’.
Here is what I believe: An abundance mindset, the opposite, operates on the belief that there’s enough success to go around. Many of our clients are in the legal sector. We (our agencies) explain that there’s plenty of business to go around. We make introductions to each other and share how they can support one-another. I believe that in business and entrepreneurship, this perspective encourages shared resources, insights, and even customers, as collaborating can create new opportunities for everyone involved.
Social Identity and Group Dynamics
Writing this article lead me to do some reading. Psychologists point to Social Identity Theory, which explains how people form ‘in-groups’ (those we identify with) and ‘out-groups’ (those we view as competitors). The downside of constantly having an ‘us vs. them’ mentality is that it reinforces walls where bridges could be built. By seeing others as potential collaborators rather than threats, we broaden our in-group and foster supportive, innovative environments.
Why Collaboration Outperforms Competition
Pooling Resources and Networks
When I decided to set my business up and go ‘all in’ on it, I knew that my marketing knowledge alone wasn’t going to be enough. I needed to use my entire business nous to accelerate my growth, get started on building relationships and getting clients. After all, I had bills to pay.
How was I going to do this?
I had an idea to set up an informal networking meeting but it needed people to attend. As I didn’t have an extensive network at this time, collaboration was key. Collaboration allowed me to pool resources, so I teamed up with David Harrison (someone who people I knew spoke highly of) and we set up Beers & Business. In a wider business sense, pooling resources, whether capital and equipment, to knowledge and professional networks can be a game-changer. Instead of duplicating efforts or hoarding information, collaborating businesses can split the cost of an expensive software subscription or share a team’s expertise. The sharing of expertise is something that lead myself and Tom Findlay to launch a CRM in 2024. Beyond tangible assets, there is power in cross-promotion: sharing each other’s platforms, audiences, and reputations often results in exponential growth.
Building Trust and Loyalty
Thinking about you – the reader, whether you’re collaborating with a colleague, client, or fellow entrepreneur, focusing on a win-win scenario sets the stage for long-term trust and loyalty. This is why we’re still working with our very first client and why we create friendships in business. People who’ve worked together successfully are more likely to vouch for each other and stay loyal in challenging times—an invaluable advantage in today’s fast-paced world. These strong relationships can lead to repeat business, referrals, and a wealth of new opportunities.
Enhancing Your Personal Brand
Collaboration is a brilliant way to enhance your own personal brand. On a recent call with a client, (and I won’t embarrass her by mentioning her), she said “You really do do it all”, meaning that I have answers to all of her questions etc. In truth, I’ve surrounded myself with the right people, have created meaningful partnerships and have become able to support in a variety of ways, more than just my area of expertise – marketing. It’s enabled me to strengthen my personal brand.
When you work alongside other industry professionals, or even “direct competitors” you demonstrate confidence, expertise, and a supportive mindset. By contributing your insights and resources, you position yourself as someone who values collective success, which can make you a magnet for like-minded clients and partners.
Practical Tips for Collaboration
I can’t take credit for all of these. They’ve been ‘collated’ during conversations I’ve had and some notable tips come from Andy Nisevic – Leadership expert – and a good friend of mine.
- Identify Complementary Skills: Look for companies or individuals who offer skills or resources you currently lack. This ensures that your combined efforts cover more ground and generate greater value.
- Set Clear Goals and Boundaries: Collaboration doesn’t mean losing sight of your own objectives. Defining roles, responsibilities, and targets can help maintain harmony and productivity.
- Communicate Openly: Regular check-ins and honest discussions are crucial. Share updates, ask for feedback, and be open to constructive criticism.
- Celebrate Shared Wins: Acknowledge and celebrate collective achievements. Whether it’s a team dinner, a special shout-out on social media, or a feature on your blog, showing appreciation fuels morale and further collaboration.
- Embrace Healthy Competition: Competition isn’t all bad; it can push us to innovate and reach higher standards. But let it be healthy competition, focused on learning and self-improvement rather than tearing each other down.
It’s not all sunshine and roses…
Something to be mindful of… The intent behind the statement…
Someone I respect and who has become a friend in and out of business is Andy Nisevic (I’ve mentioned him above). He’s an Amazon Best Selling Author and leadership expert. I’ve been on a number of his workshops, we’ve helped him with his marketing and he’s helping me work on myself, my critical thinking and my communication. Andy and I go further than a client/provider relationship. We give each other advice, Andy is a judge on our awards, and he’s spoken at our events.
I was chatting to Andy about the idea of this article and he noted that there was something we should be mindful of as business owners.
He said:
“In my experience, there are an awful lot of people who use the term “collaboration over competition”, merely because it’s become a fashionable statement, rather than something they mean.
The term “partnership” has become a common phrase when what’s really happening is a service is being sold. There are people I know who will use the term, then try and win work that barely has a tentative link to their specialty, rather than refer people in their network, which completely goes against the intent behind the statement.
It’s so important for entrepreneurs, service providers, and business leaders to do their due diligence when phrases such as these are used, otherwise we risk business arrangements that create difficulties later on.”
In essence, Andy agrees with the intent behind the statement, but has lost faith as to whether many of the people who use it, actually mean it. Andy’s advice is that you should agree up front on what both the entry and exit terms of the arrangement are and to consider making it legally binding. There are so many arrangements that I know of where people have entered into them with positive intent at the start, which then sours later on. Having the legal agreements in place when all parties still have positive intention, means that exits can be made on friendly terms. It protects all parties, and the relationships.
Competition has its place in driving innovation and pushing us out of our comfort zones. However, excessive or cut-throat competition can stifle creativity, damage relationships, and cost us opportunities that might have come from working in partnership. By embracing collaboration over competition (properly), we tap into a wider pool of ideas, resources, and support, ultimately paving the way for sustainable success.
Collaboration is more than just a feel-good strategy, it’s the key to fostering growth, building trust, and creating a positive ripple effect for all involved. If you’re looking for ways to elevate your business, your brand, or even your personal life, consider aligning with people who can complement your strengths. Who knows? Your next big breakthrough might just come from teaming up, rather than competing head-to-head.
Cheers,
Tom Stansfield
