Research the Market: Competitor Analysis
Finding your Niche amongst the Competition
The next step is to do some research. Take a look at the types of businesses that match any / all of the items on your list. Take a few weeks to research the demand for these products or services. Is the competition still young, or very mature? Is it under or over developed? Are there any changes that you could be made to existing businesses, that would improve the market or service? This is known as Competitor Analysis.
Thorough research takes time. And to be honest, you could research forever, and still not get a decisive answer about whether or not there's a significant demand for your business. Look at all the great inventions / new companies in the world. When they first started, everyone thought they were crazy! The telephone, aeroplane, google...
The most important thing to consider when assessing whether there's demand for your product / service, is to think about the future. Be positive. Think big. Imagine that your business was very successful - who would be using your product / service? Is it something that only a select few would be interested in? Or is it something many could benefit from? If it's the latter, it's more likely that you'll be able to grow the company easier.
Another very important thing to consider is: would the world be a better place if my product / service was successful? Ethics and morals should be paramount in your decision to start a company. Would you be satisfied paying slave wages to people in poor countries, then selling it for a premium to those in the more affluent countries? Or buying oil from poor countries at bargain prices, and selling it back to the developed world, depriving the local people of potentially billions of dollars in revenue, which they could use to rebuild their own country...
I'm not pointing the finger at anyone, but it's a fact that big business can get ugly. Business done correctly, and ethically, can be the most powerful and effective vehicle of change in the world. But if conducted greedily, it can have the most devastating effects. If you really want to be a good person, make a difference, and live a full life, remember that business is not just about the profits. Sure, you've got to live, but you've also got to consider other people - and exploiting some people for the benefits of others, doesn't seem like the "right" thing to do, does it?
So, when conducting Competitor Analysis, you should consider:
a) whether there is a current need / opening in the market for your product / service,
b) whether your business has potential for growth, and
c) whether it is ethically beneficial for the world.
The first and easiest way to conduct basic competitor analysis will be to look online. Type some possible related words into Google, and see what pops up. While you're researching, you should also start to get a good idea about what kind of price you should be charging for your product / service. Compare with your future competitors - if you can set your pricing even $1 cheaper than them, it will ensure any customers will be tempted to give you a try… Just keep in mind that, in the early days of your company, while you’re doing the job on your own, you get 100% of the profits. But as soon as you start hiring staff, your cut becomes a lot smaller, so you need to work on a much bigger scale to ensure good profits… so don’t lower your prices too much – they’ll be much harder to raise again in future.
Our Competitor Analysis Services
We offer research services to establish the demand for your product, the best place your potential company can fit into the market and feasibly contend with your competitors, and what kind of pricing will be suitable.
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