How Do I Build A Winning Business Plan - Part 2
Below is a MRR and PLR article in category Business -> subcategory Management.
How Do I Build a Winning Business Plan? - Part 2
Summary:
Competitor Analysis - Keep it RealIdentifying competitors in your business plan is crucial. Failing to do so can signal to potential investors that you haven't conducted enough research, might be ignoring existing competition, or worse, the market isn’t large enough to support your venture. If the latter is true, finding investors will be challenging.
Competitor Analysis - Keep it Real
When creating a business plan, it's essential to acknowledge the strengths and weaknesses of your closest competitors. This not only demonstrates thorough research but also reassures investors that the market can support multiple businesses. It suggests there's potential business to capture.
Competitive Analysis - Establish Your Barriers to Entry
Your plan should address competitive barriers. Some industries naturally possess barriers that deter new competitors.
Consider the oil industry: the high development costs and existing licenses owned by major players create significant hurdles for new entrants. This doesn’t mean new companies can’t start; they’re just rare due to the substantial resources and expertise needed to compete.
Identify the barriers to entry for your business and outline strategies to safeguard your customer base from competitors. Examples include limited prime sites (as seen with supermarkets), legal restrictions, import duties, costly equipment, and exclusive distribution licenses.
If few barriers exist, the business’s future growth and viability may be at risk. Consider ways to make it harder for competitors to take your customers, such as long-term contracts or contesting new competitors’ planning applications.
Competitive Analysis - Highlight Your Advantage
While analyzing competitors, also focus on showcasing your distinct advantages. Strong competitive edges might include patented technologies, proven management successes, or exclusive contracts with suppliers and customers, making it difficult for competitors to match your offerings.
By effectively illustrating these aspects, you present a compelling case to investors, demonstrating not just awareness of the competitive landscape, but also your strategic edge.
You can find the original non-AI version of this article here: How Do I Build A Winning Business Plan - Part 2.
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