Who are your competitors?

Raising Capital, plan smarter | PlanHQ | 0 Comments

When you start a new business, it is tempting to pretend you live in a competitor free environment. It is frightening to think you have to recognise other businesses who are big and successful and dominate the market. Even if you secretly keep an eye on them, you’d NEVER tell potential investors… would you?

Well… if you don’t you’re doing yourself a disservice.

If you pretend they aren’t there, they wont go away.

A common complaint of investors I’ve heard is that companies down play their competition. This doesn’t make them look like a secure investment, it makes them look like they haven’t thoroughly researched their market. Listing every competitor (even the big ones) and having a sound plan of attack leaves potential investors far more impressed!

Defining your competition

They aren’t necessarily who you think they’d be. Competitors are businesses that are filling the same need, not necessarily providing the same solution.

For example a gym on the surface is in the business of fufilling the need to go to the gym - therefore their competitors would be other gyms. A lot of gyms, however are actually in the business of filling the desire to look better and thinner. This widens their competition to ‘weight loss’ companies like Jenny Craig, other exercise equipment, sellers of diet books etc etc.

A business that simply listed gyms as their competitors would look a little under researched… So who are YOUR competitors?

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