In order to get your succeeded in your “Startup Business Plan”, you must know both about competitors and about their own business. Unfortunately, lots of startup business owners make the little mistake of waiting until a competitor has opened a store on your front and is cutting into profits to find out who and what they are competing.
An analysis of the competition allows you to identify your competitors and assess their respective strengths and weaknesses. To know the actions of competitors, you will better understand what products or services to offer, how can market them effectively and how you can position your business.
The competitive analysis is an ongoing process. Always you should gather information about competitors. Visit their Web sites. Read the literature and their product brochures. Investigate your products. Read about them in industry trade publications. Talk to your customers to find out how they feel about the products or services from the competition.
Top 5 Best Ways to Analyze a Startup Business Plan:
Here we will discuss about best tactical ways to identify and analyse your startup business plan. In this chapter you will also learn how to perform startup competitor analysis on your startup business idea. Let’s discuss about this in detail.
1. Startup Competitor Analysis:
Every startup business plan has competitors and must take the time to determine which clients hope to acquire a product or service that meets the same need as yours. Even if your product or service is truly innovative, attention should be paid to what else would buy their customers to achieve this task. For example, if you opened a Web site that offers Bingo online, its competence would be other Bingo sites, other games sites, Bingo in the neighbourhood and any other business that competes for the same dollars that are spent in leisure time.
Start watching their primary competitors. They are the market leaders, the companies that currently dominate the market. They are probably those which are competing in its search for new customers. Then, identify the secondary and indirect competitors. They are businesses which are possibly not identical to the one of you, but that are running the same general market. Following the example of the florist, you can be a small local shop dedicated to the sale of roses, a flower delivery at the national level or section of your supermarket or local discount store plants and flowers. Finally, consider the potential competitors. It is companies which may be entering its market and against which must be prepared to compete.
2. Startup SWOT Analysis:
Almost all startup business plan should analyse their Strengths, Weaknesses, Opportunities and Threats (SWOT). Usually, Strengths and Weaknesses are the factors that are under the control of a company. However, when looking at your competition, you should also examine their preparedness to deal with factors outside their control. These are called opportunities and threats.
It is a good idea to carry out this analysis of strengths and weaknesses in tabular form. Write the names of each of your competitors. Then, make the columns indicating every important category for the business (price, value, service, location, reputation, experience, comfort, staff, advertising/marketing or what is required for your type of business). Once you have the list table, qualify competitors and record their comments regarding the reasons for the qualification. You might even want to write in red fortresses and weaknesses in blue, so you need to know at a glance where each competitor stands.
3. Analyze Opportunities and Threats:
When preparing your startup business plan, you should look at your competitor and examine its opportunities and threats. Also be prepared to deal with these factors. There are opportunities and threats within a wide range of categories. They may be technological developments, regulatory actions or legal, economic or even a possible new competitor. For example, a shop dedicated to revealing photographs should know how their competitors are gearing up to deal with the arrival of digital photography. Or a company that sells over the Internet, you must analyze the way in which its competitors face their online security problems.
4. Determine Position of Your Business:
Once you have figured out what are the strengths and weaknesses of your competitors, you must determine where to place your company in relation to the competition. Some of them may seem obvious from the results of his analysis, but also worth dissect how your business operates.
One of the best effective ways to do is a SWOT (strengths, weaknesses, opportunities and threats) of your business. Rank your company in the same categories that you ranked your competitors. This will further clarify the picture of where your business is located within the competitive environment. It will also help you determine what areas should be improved and what characteristics of your business should take advantage of to gain more customers. The most important thing is to look for ways to leverage your strengths and take advantage of the weaknesses of their competitors.
5. Using Google Analytics for Your Business:
Google Analytics is an optimal service that Google provides for your business, with a great advantage: it’s free. With this tool you can monitor in detail all received visits, either on your blog or on your website. Through this resource, it is possible to verify how many people talk about your email address or your articles or your popularity, that sites were concerned, that part of the world and other options. There are many ways in which you can use this incredible tool for your business or company. You can improve your business by using Google Analytics.
But first, we must emphasize that what we witnessed in most analysis is the poor rating of the metrics obtained by the sheer lack of knowledge. The startup company aims to increase its numbers, but without knowing what to do or why. Then we give examples of commonly asked questions:
- How to get information from the web analysis of my website or blog?
- What information should I analyze really to make my business successful?
- What kind of decisions should be taken based on such information?
- How to verify the profile and behavior of those who visit my site or blog?
- How to transform visits in conversions?
- Is the information provided is relevant for visitors?
- What are the best stocks and the best channels to obtain the desired results?
The answers to these questions will be found from the Google Analytics in which you take a look at various metrics for the success of your company. Also you can take important decisions based on this metrics.
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Startup Basics for Beginners
- Chapter 1: What is a Startup? Definition, Examples and Startup Operations
- Chapter 2: What are the Startup Requirements? Checklist and Feasibility Analysis
- Chapter 3: What Is Lean Startup? Definition, Examples, Process and Limitations
- Chapter 4: Top 10 Key Benefits and Reasons to Start a Business
- Chapter 5: How to Start a Company or a Business – Step by Step Guide
- Chapter 6: How to Master in business fundamentals? Basics Guide of Startup
- Chapter 7: Top 10 Best Startup Ideas with Low Investment
- Chapter 8: Top 10 Best Sources for Startup Business Funding for Your Idea
- Chapter 9: Legal Formalities - How to Register a Company or a Startup in India?
- Chapter 10: Top 10 - Best Tactics on Lean Management Strategy
- Currently Reading: How to Analyze Your Startup Business Plan with SWOT Analysis?
- Chapter 12: Best Ways - To Build a Successful Startup Plan and Strategy
- Chapter 13: What is Power of Crowdfunding for Startups and Business?
- Chapter 14: Basics of Startup Quiz – Question and Answers for Beginners
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