You probably have a great idea, and it’s all set on paper as a business plan. You are looking to kick off your business as soon as possible. You are excited, and a lot of essential planning may have already been done about how you are going to take off. However, it is not all about you; you probably aren’t the only one with such a genius idea or business plan. 

So, just before you hit the “take-off” button, take a little break from the excitement to ask some objective questions regarding your competitors—those who have gone ahead of you to do the same thing you intend to do. Here are some key questions you should ask yourself and try to answer:

Which Businesses Are Already Doing What I Plan to Do?

To familiarise yourself with existing businesses within your niche, consider those who have gone before you to do the exact same thing you intend to do. Identifying your competitors is crucial to understanding the landscape you are entering.

• Market Research: Conduct thorough research to identify all the businesses offering similar products or services. Gather information using online tools, industry reports, and social media.
• Direct Competitors: These businesses offer the same products or services as you.
• Indirect Competitors: These are businesses offering similar products or services that could serve as alternatives to your offerings.

What Will My Unique Selling Point (USP) Be?

Once you have determined the businesses already established in the line of services or products you want to render or sell, you need to find out what unique strengths you have that your competitors don’t. Your USP is what will set you apart and attract customers to you over your competitors.

• Identify Gaps: Look for gaps in the market that your competitors are not addressing.
• Highlight Strengths: Determine what you can do better or differently. This could be better customer service, unique product features, pricing strategies, or a more engaging brand story.

What Are They Doing That Is Bad for Business?

Next, you should find out what your competitors are already doing that is bad for business. For example, if you are starting an e-commerce shop and several of your competitors are offering the “Pay On Delivery” option, you need to determine whether this option is too much of a risk to take.

• Analyse Weaknesses: Identify the weaknesses in your competitors’ strategies. This could be poor customer service, low-quality products, or inefficient processes.
• Customer Feedback: Read reviews and feedback from their customers to understand where they fall short.
• Market Surveys: Conduct objective research or polls to get accurate data on what customers dislike about your competitors’ offerings.

What Are They Doing That Is a Plus for Business?

Give some competitors credit; be fair to them. They probably are doing a lot of genius things. What you need to ask yourself at this point is, ‘How can I improve on their genius strategies?’

• Best Practices: Identify best practices that are working well for your competitors.
• Innovate: Consider how you can improve on these successful strategies. This could involve adding new features, enhancing customer experience, or adopting new technologies.

What Ratio of the Potential Market Is Yet to Be Harnessed?

Asking this question is critical to your business. You need to know which business sectors or physical locations your competitors have already conquered and which existing markets remain untapped. It sounds logical enough to start from markets that have yet to be harnessed by existing businesses.

• Market Analysis: Conduct a thorough market analysis to identify untapped segments.
• Demographic Study: Study the demographics of your target market to find underserved groups.
• Geographic Focus: Consider focusing on geographic areas your competitors have not yet entered.

The Importance of a Game-Changing Plan

Many times, all a business needs to stand out is a game-changing plan. A game-changing plan in business may not look grand and fabulous; sometimes, it can just be something straightforward yet able to catch the attention and earn the loyalty of a larger percentage of its potential market.

• Simplicity: Sometimes, the simplest ideas have the most significant impact.
• Execution: Focus on flawless execution of your plan. The best ideas can fail if not executed properly.
• Customer Focus: Always keep the customer at the centre of your planning. Understand their needs and tailor your strategies to meet those needs.

By thoroughly understanding your competitors and the market landscape, you can position your business for success. Remember, it’s not just about having a great idea; it’s about executing that idea better than anyone else.