How much time do you spend worrying about your competition? How often do you do things because you think your competitors are doing them and you need to keep up? Do the words “they stole my client” ever creep into your mind?

As a solo freelancer, bigger competitors in particular can seem rough and scary. Recently however a couple somethings happened to me that changed my viewpoint. I worry a lot less now about what my writer/designer neighbors are doing and pay a little more attention to monetizing the situation. Here’s what I’ve realised about those bigger competitors:

• The hiring process takes time and money
• There may be new-employee benefits and insurance to worry about
• They need physical space and raw equipment resources
• If they hit a slump they’ll have another person to fire (yes, HR personnel worry a great deal about this)

Regardless of how big or small your competition is though, here are five good reasons not to break into a cold sweat think about them.

1. Your Competition Isn’t As Good As You Are

Think about it.

Someone somewhere is the worst graphic designer in the universe.

Somewhere else is the worst writer ever.

Somewhere there’s an accountant who’s probably worse at math than me.

We all the know the old parable where two buddies are out hiking and they come across a bear. One of the guys takes off his backpack and gets ready to run. His buddy says, “It’s no use. You can’t outrun a bear.” The other guy responds, “I don’t have to outrun the bear. I only have to outrun you.”

Fortunately it’s the same for freelancers. We don’t have to be the best in the world. We just can’t suck worse than everyone else. If you simply show your potential customers that you’re not that guy, you’re bound to get work.

2. There’s Plenty of Room for All of Us

I just got finished designing a website for a web designer.

I know. That doesn’t make much sense to me either. That’s basically like going into a cannibal’s tent, handing him a knife and fork and telling him you just finished spreading butter all over yourself.

But I’ve also gotten writing work from other writers, and designed logos for people who design logos. It’s odd, sure, but it may be a symptom of other things. They may be slammed with so many paying clients that they don’t want to take time away for their own company requirements. They may not have confidence in their own work. Or maybe they just want a different style from what they themselves do.

I’m not sure why this happens but it does, and seems to fairly regularly.

When your competition is giving you rein over some of their personal items, it’s a good bet there’s room for you elsewhere too.

3. There are a Lot of New Companies Begging for Your Help

In 2005, there were 672,000 new companies that had employees in the US. That’s to say nothing of all the sole-proprietorships, one-man-band LLCs and partnerships that started. That’s a lot of new business and I’m sure the numbers were even greater for 2006 and ‘07.

How many of these companies would you guess need a hand with something? Judging from my own experience, a lot them do.

And just because they’re up-and-coming doesn’t mean they don’t have the finances to pay you. They have new business loans, savings and/or venture capital. They’ve also got big dreams and sky-high goals and want things done right the first time.

If you can give them that extra polish or push, they’ll reward you for it, as they should.

4. Quick! Call in the Subs!

If you haven’t yet made a name brand for yourself and taken hold of your niche, you can be sure some competitor has. And they’re super busy. They’re well known and have a client list that goes on for days. They’re probably even turning away work because there’s too much of it and not all of it meets their income potential.

That’s where you come in as a subcontractor. Offering “overflow” services to your competition is a way to get work, and sometimes a lot of it.

It’s also fairly easy to get it because it’s a win-win proposition. You’ll get work through your competitor – who you may notice is no longer your competitor at all – and they’ll still make their cut of the proceeds after paying you. Plus, they get to continue to grow their client list with minimal effort.

You’re wondering why they’d hire you instead of hiring a full-time employee? Because it’s a nightmare.

That leaves freelancers. One of the smartest moves you can make is to get on the “inside” with some big and/or busy companies. Send your promo pieces to them. Call them on the phone. Stop by to check out their operation and leave your card with them, explaining what you do. Tell them you’d be happy to take their overflow.

If they hit the wall with work, they’ll do what they’re comfortable with. And since you’ve been eating lunch with them and bringing them homemade pie, you’re first in line.

5. Somebody Out There is Looking for What You Do, Exactly How You Do It

One of the first commissions I ever got was off Elance. My portfolio at the time was one logo and it was absolutely horrid. But someone saw that lonely logo, liked it and contacted me.

Despite being in competition with established companies with hundreds of polished portfolio items, I found that one guy who saw what he wanted in what I do. We ended up working on quite a few things together and that snowballed into a career of sorts.

This tip should be read in a couple different ways.

First, don’t worry about being the best at everything. If you do fantastic motion graphics, get clients who need motion graphics. Practice what you love and what you think is the easiest to monetize. Then concentrate on getting clients who need that.

Second, advertise what you personally can offer your customers. If you offer a “little this, a little that” your primary message is going to get diluted. Put your best foot forward and then point at it and incessantly until your customer sees it.