Nine Questions to ask before starting a business

DFN: Simple questions to ask and answer before starting a business.

Nine Questions to ask before starting a business
by Ali Hasan
Dec. 03, 2009

If you are planning to start writing a business plan, the very first thing is to research about your competitors. Every business has competitors and it is crucial to give detail information about them in your business plan. Do not simply list the names of your competitors, but also it is necessary to give their background information, the product, or service they are selling, their strengths and weaknesses and how they are operating their business. If you have done a deep and thorough research about your competitors, you will be able to launch a better product and starts a better business then them.

When start writing the competitive analysis of your business plan, ask yourself the following nine questions:

1. Have I comprehensively listed my direct and indirect competitors? If you have missed any, it can poorly affect your business.

2. Make sure you have all the data on your competitors. Check and ask yourself have you gathered all the facts regarding your competitors?

3. Have I gathered all the strengths and weaknesses of my competitors? Your competitive analysis must contain both the strengths and weaknesses of your competitors. Consider more on their weaknesses because their weaknesses may be your strengths.

4. What is my competitors target market?

5. Is there a part of the market that my competitors are failed to notice? This will act as a potential niche market for you.

6. What are the services that my competitors are not providing to their customers? By this, you will be able to provide services to your customers that your competitors are not offering.

7. What is the anticipated market share for me?

8. What prices my competitors are offering? If you are selling your product at high or low price, do not forget to explain why you are doing this.

9. Do I have enough capital that I can run a successful business in a competitive market?

Competitive analysis is used to distinguish yourself from your competitors. It helps you to launch and run your business better than them. Make sure to do a proper and careful competitive analysis if you want to gain a competitive share of the market.


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