You are devastated! The business you built over the past years is being threatened by--of all people--a business started by one of your former trusted employees, and you don't have a non-compete clause to protect yourself.

The new business is capitalizing on all your strengths, appears to be well capitalized, and is getting wonderful press. You suspect you've already lost several long-time former customers to this new business, and you're worried that there just might not be enough business in your area for both of you. You've worked hard to get where you are, and you wonder what you should do. Here are some suggestions.

ANALYZE YOUR CUSTOMER BASE
Chances are you have been stuck in the same marketing groove for several years, and this new upstart recognizes and is ready to capitalize on this fact.

Begin your analysis by surveying your present customers to discover what it is about this new company they like, then begin the modification process to bring your firm into the new century.

Start by contacting those customers you suspect you have lost. Call on them in person to let them know how seriously you take the loss of their business. When face-to-face, ask them specific questions such as, "What impresses you about the new company?" and "What services are available from the new company that you were not receiving from us?" and "Other than just 'trying-out' the new company, is there anything special you are looking for that we have not been supptying?"

The goal of this analysis is to learn exactly what it is your current (and future) customers want from a firm such as yours. Your next task is to do something with the data.

RE-DEFINE YOUR MARKET NICHE
Once you have the facts, do something! A great place to begin is to talk with your national support group, if you have one, or with similar businesses in other towns if you don't.

Your task is to find out if there is a trend or movement away from the traditional services and products you offer towards something new or whether this is just a case of, "Lets see what this new guy offers." If it's a trend, you need to decide how you can change the way you do business to capitalize on the trend.

Analyze your competitor's offerings. Ask yourself, "Are these indicative of this new trend or are they merely a modification of what I've been doing these past few years?" If they are truly new, your next move is to put these new features in place as soon as possible.

RE-INTRODUCE YOURSELF
Pull out your current and past customer list and send each person a card or letter thanking them for their past business, and then tell them about the new services you are offering. Be sure to invite them to call you with suggestions.

Don't bother stressing the years in business you have or the past favors you've done for your customers, that means nothing. Stress the BENEFITS your customer will receive through your new offerings. Also, don' t mention the new company in any way. Both you and your customer know they are there, and mentioning the new guy will only call greater attention to the problem.

HAVE A GRAND RE-OPENING
Spruce up the joint and have a grand re-opening! Give away prizes, have a band, put on a show, and in general, re-introduce yourself to your customers. Let the press know what you're doing, and get some of that publicity your new competition was hogging.

RE-TRAIN YOUR STAFF
I've saved this one for last. There's no question about it, we all get entrenched in what we do as time goes on. Your main problem may not be product or service, but the way in which you and your staff interact with your customer. In your search for answers, you will quickly learn whether this is a problem in your business; and if it is, you need to do something about it immediately or your business will continue to go downhill.

There are a number of programs that can teach improved customer service, and if this is one of your problems, the money you spend on re-training will come back to you many-fold.

Customers in this day and age want and expect superior service. If you don't provide it, they will desert you for the competition faster than a flock of pigeons can find a supply of bread crumbs.