The Comparison Trap: Why Comparing Your Business to the Competition is Costly

It’s a typical Monday morning. You groggily get going, and then – ding! – another notification rolls in.

Before you know it, a TechCrunch article about your piping-hot competitor goes from a harmless notification on your phone… to an abyss of discouraging thoughts and potentially unproductive tasks, conversations, and pivots.

Why do we get sucked into the “comparison trap”?

And when it inevitably catches you, how do you bust out?

To stop comparing yourself to others, it’s crucial to grow your awareness of the issue and take steps from there. Sure, reading and posting comparing-yourself-to-others quotes on your desk can inspire change. But our goal is to share what we’ve learned from the snares of comparison and provide you with concrete steps to avoid unhealthy comparisons.

Let’s dig into the sneaky comparison trap – and equip ourselves to break free.

Why We Naturally Compare Ourselves To Others

Before going any further, we need to acknowledge that comparison isn’t 100% bad. Comparison can motivate us to push ourselves, and it gives us a way to measure ourselves.

However, the pitfalls are dangerous, from dragging down self-esteem to buoying it in less-than-ideal ways (for instance, comparing ourselves to those worse off than us). Up to 10% of our thoughts can revolve around comparisons, per multiple studies. You can read more about comparing yourself to others in Psychology Today.

In the modern world, social media creates a gigantic opportunity for comparison, which may be unhealthy. As shown by a study of young people and “new media” screen time, there appears to be a correlation between increased screen time and decreased mental health.

Whether your competition shows up in your inbox, or you’re encountering social media comparison traps, we all need to stay vigilant against the harmful effects of comparison – especially when leading a business.

What Comparing Your Business To Competitors Can Do To You – And Your Team

The comparison trap is alive and well inside organizations. Besides peer-to-peer competition, another prominent variety of this trap is comparing your business to competitors.

Entrepreneurs, founders, CEOs, and other management roles need to ward off unproductive steps all the time – and even more so when coworkers are concerned about the competition. Handling this carefully is key, lest fear gets the best of you and your team.

Stepping back, taking a deep breath, and evaluating the news about your competitor objectively are the first steps to take. Otherwise, the panic of the competition outpacing you can demoralize and demotivate your team (and you).

Now, let’s explore how to walk the tightrope – and not fall into the comparison trap.

How To Avoid Falling Into The Comparison Trap

“Am I comparing myself to others?” is a good place to start. When you’re aware of your habit, you can start to change it. Comparison is not only natural to humans, but it’s also very prevalent. Noticing it – and naming it – might take some effort, yet this step can help you both in your personal and work life.

BEWARE OF REACTIVITY

This is a tough one (I say this from experience :) Especially as leaders, we need to remain mindful of how we react to our competitor – even if that unicorn startup just raised $40 million in a round of funding.

Instead of falling into patterns of reactivity, where every piece of news sends your roadmap into disarray, calmly revisit your gameplan.

Ask yourself – and the appropriate teammates – questions like:

• Does this new feature from our competitor also align with our high-level strategy?

• Have our customers expressed a desire for this feature? (If not, will we ask them soon?)

• Is this news just a PR ploy? (Certain announcements might be half-truths, rather than real developments, so we maintain a healthy dose of skepticism.)

Remember to stay calm. Your roadmap isn’t set in stone, yet changing it from day-to-day, week-to-week, or month-to-month doesn’t provide a solid foundation for your company.

As I became more aware of my influence on my team, I realized: A team can sense when its leader(s) is feeling uneasy or panicked. Keep in mind that they look to you for strength and leadership, and they take cues from your behavior.

FOCUS ON HOW YOU’RE DIFFERENT

Take a time-out, and reflect on your product and company’s unique value. This is a perfect moment for the product manager or other leader to steer the group back in a positive direction.

Most of the time, it’s unrealistic to produce essentially the same product as a competitor, yet make it cheaper, better… and with additional features. While there’s no escaping the existence of competition, you and your team can come to terms with it. Through this process, you may even generate a newfound sense of pride in your one-of-a-kind value.

OPEN UP YOUR INTERNAL CHANNELS

Like a runaway train, your competitors’ announcements may create a barrage of to-do’s from various teammates. News shared and circulated in your office can snowball into a feeling that your competitor’s new feature is a “must-have.”

Before ideas get out of hand, you need to construct avenues for feedback. For instance, we’ve done the following:

• Make a Slack channel dedicated to product ideas/requests. This way, your team feels heard, and their ideas get careful consideration. Saying “no” to everyone’s suggestions isn’t productive for your team, and we find this is a diplomatic solution.

• Use your CRM to record sales calls, if possible. When fielding requests from a customer/lead, getting their actual words to the product manager is key. Otherwise, the solution that the salesperson infers may not be spot-on. This is a great opportunity for delegating tasks amongst your team, so everyone gets to contribute their particular expertise.

A thoughtful approach can save you loads of headaches – and wasted time – in the long run.

MANAGE THE EXTERNAL CHANNELS THAT DON’T HELP YOU

While you want to stay aware of your industry and competitors’ news, the constant stream of comparison temptations can be too much. Even well-meaning family, friends, and colleagues may send article after article about your competitors… so finding a way to cope is critical.

By customizing your phone and computer’s push notifications, or creating automated folders in your inbox for industry news, you can control the torrent of comparison-inspiring alerts.

You can also set up a weekly or daily ritual, so there’s a time when you only review competition/industry news. Give it focus for a set amount of minutes, note what you might want to discuss with your team, and then get on with your work.

DON’T COMPARE YOURSELF TO SOMEONE ELSE’S “MIDDLE”

Like personal social media, business news/social media generally puts a company’s best foot forward. Beyond seeing a curated collection of photos and announcements, you might be comparing yourself to them on uneven ground.

Each business has its own trajectory. If a startup is relatively new, receiving a sky-high valuation and funding, your late-stage startup may automatically feel envious. It’s easy to focus on the dollar amount, thinking of how great that injection of cash would be, without remembering that you’re in a different stage. Comparing yourself to competitors in other phases of growth is tempting, yet largely unproductive.

Instead of comparing yourself to someone else’s “middle” – that is, their highpoint in their lifecycle, which may be rich and meaty – enjoy staying zoned in on your own company’s progress.

KEEP TRACK OF PERSONAL BESTS

What’s a much fairer way to handle comparison? Compare yourself… to yourself (this goes for the personal and business side). In your company, you can measure, analyze, and celebrate your progress over time.

This means gauging your month-over-month, quarter-over-quarter, and year-over-year stats. While revenue is clearly a core metric, you can leave that aside for now. Focus these “personal bests” on progress in whatever KPIs are important to your team, such as daily active users.

STAY CENTERED ON YOUR OWN GOALS

This applies to both sides of the work-life balance. We hold a (roughly) annual family summit for reflection and goal-setting. When you’re glued to your own roadmap, with a measured approach to comparison, then you can confidently proceed with your game plan.

Looking for guidance on how to navigate the media maze?

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