The business plan competitive comparison is an art form. This section of the business plan needs to accomplish several objectives -- it must identify your competitors, it must assess their strengths and weaknesses, and it must make an overarching statement about your ability to outperform the businesses you've profiled. If your business is in a fixed location and you market to a set geography, the competitors should be easy enough to identify. You will have several tools to employ to write about your competition:
• The competitors' websites themselves
• Consumer review sites
• Free information sites like Manta
• Paid websites like Dun & Bradstreet
• Primary research
• Other Internet sites (check what's available)
The ideal competitive comparison looks closely at your direct competitors and gives a gloss on your indirect or second-tier competitors. Remember that virtually NO business has no competition at all, so don't claim to face no market threat (it's probably not true). Also, don't overdo it; people won't invest if it looks like your entering a clogged market space. If you need professional input on your market analysis in progress, or want this information reflected in your financial model, contact MasterPlans. We have a full in-house team of market analysts and financial modelers who can present your business more accurately than you ever imagined possible. Consultations are always free -- call us at 877-453-2011 to learn more today.
