Sizing Up Your Competition

Most small businesses have competitors in their area or on the web. It is your job as the small business owner to check these businesses out to see what they’re doing right or wrong…then apply their strong points to your own business. Let’s talk about how to locate your competitors.

Use Google Places to find the competition in your location. Take a look at their website and if you can, try to make an “appointment” with them or check out their product if they have a store. You want to absorb the techniques they’re using if it makes them successful. What type of advertising campaign are they running? Can your small business design profit from borrowing a few of these ideas and applying them to your company? If your products are similar, find the differences and see if you need to make changes. Are they offering lower prices or even extras along with the product? How about their service? If it’s service competitors, consider using them and see how they go about it. How did they treat you (the customer) and how well did they do the job?

You may find out that businesses similar to yours may be doing things differently. This can be good or bad, so don’t run out and try all these different techniques all at once. If you know that a company is doing better than you, investigate and find one thing to apply to your business. If they’re taking out an ad in the newspaper and you’re not, maybe you are underestimating how much business you can get from local ad placements.

One thing to remember when you’re trying to improve your small business is the SWOT Analysis. SWOT stands for: Strengths, Weaknesses, Opportunities and Threats. Whenever you’re checking out a competitor, just ask yourself the following questions:
• What advantages does your business have?
• What can your small business improve on?
• What opportunities are up and coming in your market?
• Are changes in technology going to hurt your business?

When you answer a simple SWOT analysis, you’ll most likely uncover things about your business that you can make changes on. Once again, don’t make a bunch of changes at once. When you see something that is working well for a competitor, give it a try. When you do too many things at once, when things don’t work out it’s harder to backtrack. While trying out techniques, keep in mind that you do want to have an advantage over your competition and that is to be unique. So take the good ideas from other companies and make them your own! Offer complimentary services the other businesses don’t offer. At the end of the day you want your small business to stand out, not blend in!

Small Business Design Resources