1. Find your niche.
2. Capitalize on the competition.
3. Study larger companies.
4. Develop a joint venture relationship.
5. Start local.
6. Get involved in your local community.
Competition is healthy in the business world as it encourages creativity and innovation. You can combat competition by getting to know your competitors and using information about them to your own advantage.
source: http://www.morebusiness.com/combat-competition
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