New competition from much more established business

hey, so I'm after a bit of advice.

This summer I expanded my business into an old life guard hut, it's a paddle board hire, kite surfing school and yoga space (we also sell coffee) on the beach.

We are based at the West end of the beach, there is another guy on the east end (hes been there 10 years) who does a similar thing, and I figured, you know, enough space for everyone.

today I found out that he is expanding his business to include the West end of the beach. i.e. he is starting to sell exactly the same stuff as us but closer to the West end car park (like literally in it) about 100 meters away from me. effectively cutting me off from my passing trade. he will be based in the car park I will be based in my hut 100 meters down the track.

it's an aggressive move and obviously he feels threatened by my presence. I've tried to build bridges but that isn't working. I can't do anything about him moving in, I'm just after some advice about how to best proceed.

thanks.

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