Fair competition is the lifeblood of capitalism. Every significant advance in consumer products and services has come because of competition from producers and sellers. Competition keeps all of us on our toes—because we know that our competitors are always trying to build a better mouse trap.

For a fun discussion of competition, get the booklet Who Moved My Cheese, by Spencer Johnson. It is not quite the self-analysis of a Malcolm Gladwell work, but it is pretty darned instructive.

No one likes to think that his or her business model is out-of-touch. But, if we do not voluntarily analyze the way we do business, our competitors will force that analysis on us—and that often happens when it is too late to make important changes.

Large companies operate on a different scale than their smaller competitors. This can be a daunting challenge for smaller companies. It seems that the larger companies can offer a variety of products in an incredibly diverse manner. Big companies just have the resources to experiment, make mistakes and survive them.

However, smaller companies also have innate advantages—whether being more nimble or being closer to their customers. And, the consumer finance business has always been a relationship business. Keeping those personal connections may seem more difficult in a technology driven era with a lot of competition. However, mastering the personal relationships can keep customers’ life-long loyalty.

Johnson, Gladwell and others tell us to be realistic. Control the things that we can. Recognize those that are realistically beyond our control. But, above all else, concentrate on our advantages, while always keeping an eye toward improvement—and always keeping an eye on our competitors!

Please Note: This is the two hundred-twenty-seventh blog in a series of Back to Basics blogs, in which relevant and resourceful information can be easily accessed by clicking Dentons - Consumer Finance Report.