Why are so many people afraid of competition? Business owners and executives live in fear of competition coming into their market. Government workers panic when they hear the word “privatization.” Whole countries threaten to put up a protectionist wall rather than have to compete on the world stage.

Try mentioning the word Wal-Mart at a meeting of the Downtown Merchants Association. You just might find yourself the owner of a new suit made of tar and feathers.  

Of course what many people don’t realize is that competition is good for us. It makes us better. As an athlete, it’s great for your ego to compete against those who are not nearly as good as you. But the only way you’re going to get better is to test yourself against the best. It’s the same in business.

Often, I’ve heard people get excited about an idea for a new business based upon the fact that “No one else is doing it.  There’s no competition.” While there are times that can be terrific; many times there's no competition because there's no need for the product or service.  

Don’t let competition scare you. It could just mean there’s a tremendous need for what you do. Another great thing about competition is that most of the prospects and clients there are likely quite familiar with the product and service. You don’t have to go through a long explanation of what it is that you do.  

The other thing the prospects and clients all know about your product is that it costs money! Don’t laugh. Have you ever tried to sell to someone who didn’t know the first thing about your product or service? No matter what price you quote, they’re shocked, “Wow, I never realized it cost that much.”

Retailers have heart failure when they hear, “Wal-Mart is coming!”  So what. Wal-Mart brings traffic; if you're shrewd enough then that traffic means more potential customers and more money. If you don’t believe me, look at what’s going on in some of the malls around the U.S:  

According to the Wall St. Journal, “Some mall owners are rolling out the welcome mat for the retail behemoth. They see Wal-Mart and its competitor Target as a replacement for the traditional department store anchors that have been shrinking with the demise of onetime stalwarts such as Montgomery Ward and the consolidation throughout the industry.”  (Nov. 22 , 2006)

According to the article, Hanover Mall in Hanover, Mass. credits Wal-Mart for boosting mall occupancy to an expected 97% in 2007 from 78% in 2003, the year before Wal-Mart replaced a closed Ames discount store.

At Grossmont Centre in suburban San Diego, 21% of shoppers who enter its attached Wal-Mart anchor end up inside the mall. The mall had an 18% vacancy rate and sluggish sales until Wal-Mart replaced a closed Montgomery Ward. Now the vacancy rate is near zero and sales for existing tenants are up 26%. The same thing is happening at many other malls throughout the U.S.

A rising tide lifts all boats. Competition forces us to be sharper, smarter and better at who we are and what we do. It makes companies more creative, flexible and customer driven. I fail to see how any of that is a bad thing.