Competitive
Analysis: Business
Plan Basics
The competitive analysis section of your
business plan is an objective overview and comparison between
your company and your competitors. Begin by identifying your
direct and indirect competitors, what and how much they sell
(in units and sales dollars), the number of years they have
been in business, and their specific market niche. Outline
the strengths and weaknesses of each of your competitors from
an unbiased perspective.
It is advisable to include a chart or pie-graph
showing what share of the market each of your competitors
commands, the trends and changes over time. Explain the percentage
of the market you intend to capture, and from whom or how
you will achieve this market penetration.
More than anything else, it is important
to be straightforward and honest about your competitors and
their strengths and weaknesses. Many first time business plan
writers don't realize that investors want to see that other
businesses are profitable and successful in your chosen market.
If you fail to present your competitors, or claim you have
no competition, why should investors assume that a market
even exists from your product or service. Instead, present
comprehensive information and point out how your unique strengths
and tight market niche will result in your success.
For more advice on writing the competitive analysis section
of your business plan:
Email
us at BizPlanIt if you have comments or suggestions about
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