Chapter 1: Getting Started
Even if your business idea is as unique as a unicorn, chances are, there’s someone out there doing something similar. And that’s perfectly fine; it’s just the rhythm of business life.
Welcome to the world of competitive analysis—where being a bit nosy can actually be a good thing!
But if you’re not keeping tabs on your competition, you could be dancing in the dark, missing out on opportunities that could have been yours for the taking.
You can’t create a competitive analysis report without doing market research, which you probably don't realise you have already started doing.
Finding your target market could be asking people on social media, researching other companies websites that are doing something similar - it's all about gathering information to understand your customers, identify opportunities to grow, and recognise trends in the industry.
Understanding the Competition
Understanding what your competitors are up to isn’t just about keeping an eye on them—it’s about being ready to move swiftly and smartly to snap up opportunities they’ve overlooked. Think of it as your secret weapon to stay one step ahead in the business ballet.
Market Research: Your First Move
Guess what? You’ve likely started your market research without even realising it. Whether you’re engaging with potential customers on social media, scouring competitors’ websites, or just chatting with people about what they need, every bit of info helps you understand your customers better, spot growth opportunities, and keep up with industry trends.
Testing Your Pitch
Got your business idea all sorted? Great! Now it’s showtime. Test your pitch on friends and family. Do they get it right off the bat? If they’re scratching their heads or bombarding you with questions, it’s back to the drawing board. Remember, if people can’t grasp what you’re selling, they won’t be opening their wallets.
Refining Your Focus
Now that you know who your target market is, what tickles their fancy, and how they prefer to digest information, you can tailor your marketing efforts with laser precision. Whether that’s crafting catchy social media posts, sending out engaging emails, or peppering your website with compelling content—it’s all about speaking their language.
Let’s Get Practical
Remember that mini business plan you tucked away? Whip it out because it’s time to get down to brass tacks. Here’s what you need to fill in, drawing from all the insights you’ve gathered:
• Problems: What are the top three headaches your customers face?
• Channels: How do you plan to reach them?
• Your Why: What drives you? What’s the passion fuelling your business?
• Competitors: Who’s playing in your league and what are they acing?
• Target Market: Paint a picture of your ideal customer—their age, gender, interests, and where they hang out.
• Differentiator: What sets you apart from the crowd? What’s your secret sauce?
• Solutions: How will you make your customers’ lives easier or better?
• Costs: Crunch those numbers—what will it cost to get your product to market? What are your ongoing expenses?
• Revenue: Show me the money! How will you price your product or service?
• Goals: Where do you see your business in one year? How about in five years?
Next Steps:
Now that you’ve scoped out the competition and tuned into your market, it’s time to turn those insights into action:
1. Refine Your Business Plan:
Use the insights gathered to update your business plan. Focus on sections that detail your competitive advantage and marketing strategies.
2. Develop Customer Personas:
Based on your market research, create detailed customer personas. These should guide all your marketing and product development efforts.
3. Set Up Monitoring:
Keep a close eye on your competitors and industry trends. Tools like Google Alerts, Feedly, or even a simple spreadsheet can help you stay informed.
4. Test and Adjust:
Use feedback from your pitch tests to refine your messaging. Make sure it’s clear, compelling, and perfectly tuned to resonate with your target market.
5. Launch a Mini Campaign:
Using one channel identified in your research, launch a small marketing campaign targeting your ideal customer persona. Monitor the results and tweak as needed.
6. Schedule Regular Reviews:
Market conditions change, and so should your strategy. Set a schedule to review your competitive landscape and market strategy at least every quarter.
By following these steps, you’ll not only keep your business strategy sharp but also ensure you’re dancing to the right rhythm and captivating the right crowd. Let’s get those plans into action and see your business soar!