10 Proven Tips for Evaluating Your Competitors When Starting a Business
If you’re writing your business plan to start a business or have an established company, there will come a time when you’ll need to evaluate your competitors.
There are three components to a good competitive analysis:
- defining the metrics and identifying the competitors you’re comparing,
- gathering the data, and
- the analysis.
Where do you begin?
What are the relevant factors that you should be comparing?
What conclusions can/should you draw from the data?
Here are 10 tips for evaluating your competitors.
1. Define WHAT metrics are important.
If you pick the wrong metrics, you can still make a competitive analysis – but it will not be significant.
2. Look at recent trends.
Recent trends are important because they paint a picture of what’s happening now.
3. Evaluate historical trends.
Historical trends are important because they help you understand the speed of growth and see if the same events impact both entities equally.
4. Don’t Forget Monthly and Annual Growth.
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Rapid monthly growth is meaningful but can be deceptive if the annual rates paint a different picture.
Watch the video below for more detail on these four tips, plus six more.
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