SmallBusinessNewz

Before you write the Competitive Analysis portion of your Business Plan, you must  first conduct a thorough investigation of your competition. Your research must persuade the readers (AKA potential investors) that your business offerings will benefit consumers in a way that your competitors can't or won't.

As discussed in the video above, it is important to ask yourself the following questions when you begin your Competitive Analysis research:

1. Who is my competition?
2. What sets my business apart from my competition?
3. What are their strengths and weaknesses?
4. How can I capitalize on their weaknesses?
5. What are they doing better than I am?
6. What can I learn from them?
7. How can I present my products or services in a more compelling way than the competition is doing?
8. What areas of the market are they not reaching?
9. How are they marketing themselves?
10. How can I improve after studying the competition?

The most effective way to investigate your competitors is to visit them personally. Observe their location, pricing structure, and managing operations. Find out if they have an online presence, and if not, that would be a great opportunity to push your business ahead. Talk to customers and vendors/suppliers and cater to their needs. All these areas could help to set your business at a very advantageous position

As you write your Competitive Analysis, discuss your competition at the beginning. Be confident in your business, but also be respectful in your portrayal of your competitors.

After you have laid out the factual information about your competition, you must detail your competitive advantage. Remember that the goal of the Competitive Analysis is to give the potential investors assurance that they will get a return from their investment into your business.

We only have a few more sections left in our Business Plan series. Be sure to check out the entire series in case you've missed something.