In business, two things are certain: taxes and competition.<\/p>\n\n\n\n
While there\u2019s little you can do about business taxes, you have greater control over the competition your business faces. You can avoid it by launching a business in an undiscovered niche or, in a competitive marketplace, you can beat it by staying a step ahead of your competitors.<\/p>\n\n\n\n
But to beat your competitions, you must understand them. You must know their strengths and weaknesses.<\/p>\n\n\n\n
Do you know how to do this?<\/p>\n\n\n\n
Continue reading to learn how to better understand your competitors in business.<\/p>\n\n\n\n\n\n
The first step to understanding your competitors is to identify them.<\/p>\n\n\n\n
When you\u2019re in a competitive marketplace, it\u2019s easy to assume every business that operates in your niche or offers a product or service that\u2019s similar to yours is a direct competitor. Don\u2019t make this assumption.<\/p>\n\n\n\n
A business is only a direct competitor if it targets the same consumer market as your business. If a business offers a similar product but targets, say, boomers, while your business strictly targets millennials or Gen Z, that\u2019s no a direct competitor.<\/p>\n\n\n\n
As such, start by making a list of your direct competitors. A reliable way to know your competitors is to ask your customers. Whoever they consider an alternative to your business is your direct competitor!<\/p>\n\n\n\n
You don\u2019t need to gather every bit of information about your competitors. This will only waste your time and money, especially if you have many competitors.<\/p>\n\n\n\n
So, what kind of information should you know about them?<\/p>\n\n\n\n
First, you need a detailed description of their product\/service. How does it work? How is it different from yours? As a customer, would you prefer their product over yours?<\/p>\n\n\n\n
Next, what\u2019s the cost of their product\/service?<\/p>\n\n\n\n
How do they distribute or sell it? Is it on their website? Do they have a brick and mortar store? Do they sell it on third-party eCommerce platforms like Amazon?<\/p>\n\n\n\n
Other crucial pieces of information to obtain include:<\/p>\n\n\n\n