Unless you have just invented a new product, and I mean new, not a re-design of something that already exists, but something brand new. Never seen before product, like when the internet was created, or the car or the walkman. Then you will have competition. Competition should not be seen as a bad thing, just as another thing that needs consideration in the start-up/running of your business.
My business plan included a short report on our competitors, but this was short and pretty brief. Once I had identified the particular competitors that are geographically closest to us and whose product is the most similar to the one we offer, we started to dig a little deeper.
We already knew that our main competitors are large chain gymnasiums. The corporate nature of these big all encompassing giants, with plush bars, swimming pools and added extras is obviously a big attraction to some people when looking to get fit. Most would not know any different. They think Gyms = where you get fit.
Our other major competition comes in the form of other people running “military fitness” classes which are along the same lines as we do them. Every single one of these we found, didn’t advertise very well and all required monthly subscriptions with a monthly fee.
We addressed how we are different to the Gyms and from the start we were running Boot Camp as pay as you go. So that should see us different to the other Military Fitness classes nearby. We also aim to overkill the advertising. Offer the first months classes as free, and allow people to pay as they train. We will also provide a raft of free information on nutrition, weight loss and plenty of other tips. We have to be better than our competition and not just have people favour us because we are geographically closer.
I asked myself some questions when looking into our competition and hopefully these can help you too.
Who is the competition? – What other companies offer services similar to your own, draw up a list.
Where is the competition based? - Which other companies offer your product, nationally, if you are a large company, or web-based, and regionally, if you offer a more personal service. It isn’t a great idea to open a shop next to a competitor unless you’re completely confident you can outdo them.
How am I different, or how could I be different? Find out what products/services are offered, review your own, and find out how you can make yourself stand out. You don’t always have to take off your competition to succeed.
How do they reach their target audience? Find out what is (or isn’t) working for your competition, and develop a marketing strategy for your business around this. Budget will be a huge deciding factor in this though.
How much do they charge? Pretty vital part of competition assessment. It will depend on whether you are a budget or luxury version of you competition whether you charge more or less than them. But you must know the prices to adjust yours accordingly.
Once you have asked the questions, you should conduct a mini review of your company. Particularly if you feel the competiton is getting the better of you.
This should be enough for you when starting up, but even for those with an established venture, failing to actively monitor the competition could prove fatal, at a time when every sale counts. Remember, everyone has competition, don't think of it as you and THEM. You can both co-exist and prosper!
I hope you are finding blog useful and entertaining. I don’t know what you’re getting next week, I’ll see what needs dealing with!
Thanks for reading
Stephen Howson
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