Evaluating the Competition
Question: What do I need to research to evaluate my competition
Answer: It is critical that you understand what to expect your competition to do when trying to win business. How do you know? Research the competition. Know them as well as you know yourself. Sun Tsu said “If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself, but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.
When researching your competition consider:
- What is their business model – how are they organized and how do they sell their products and services?
- How big are your competitors – the same as you are planning, larger or smaller?
- Where are they located – single location? Multi-sites, regional, national or international? 4 Are they profitable?
- What features do their products/services offer? What are the benefits they convey to customers?,
- What is the prices your competitors charge? – are they higher or lower than your planned pricing?
- How are you competitors staffed – full-time, part-time, out-sources, contractors, the number of employees?
- Overhead – what are your competitors’ overhead expenses?
Source: Simple Steps for Starting Your Own Business – SCORE/BoA
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