How does your planned new business measure up to your competitors?

Even if you’re convinced that your product or service is unique, it’s highly likely that your potential customers can already find it in one form or another. Your job is to assess thoroughly and objectively who your competition is, what they offer and what factors make your product/service superior to theirs (i.e., your competitive advantage). Then, you must convince potential customers why they should come to you instead.

This analysis will also figure prominently in your business plan. A thorough understanding of these factors is also essential to convince lenders that you have a valid business idea and realistic plans for business success.

How does your planned new business measure up to your competitors? Find out by taking this quick quiz. Note that the analysis of your competition affects many elements of a business plan and the questions below represent only a sample of the issues that must be considered.

1) Can you concisely describe to someone unfamiliar with your business what your product/service is and what makes it unique?
Yes / No

2) Can you justify why your pricing strategy is competitive, yet profitable?
Yes / No

3) Have you identified potential disadvantages of your product/service and how they may affect your profitability?
Yes / No

4) Can your competitive advantage be easily conveyed in your marketing materials?
Yes / No

5) Have you analyzed the strengths and weaknesses of your competitors (e.g., location, expertise, reputation, services and/or personnel)?
Yes / No

Conduct a competitive analysis in your market, including products, prices, promotions, advertising, distribution, quality, service, and be aware of the outside influences that affect your business: http://www.alnmasterminds.com


God Bless,


John and Melissa Moton
http://www.alnmasterminds.com


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