Where an industry analysis establishes the scope of the marketplace, a market analysis tells a business owner if a market within a particular industry will be profitable for a company’s product.
Before you can begin writing your business planning roadmap, you need reliable information about your industry, your competitors, your product and your customers for inclusion in it.
An industry analysis, competitor analysis, product feature comparison and market research will give you the information you need.
If the features of the competing product give it a performance advantage over your own, you can evaluate how important those features are to determine if your product should be redesigned.
Another source of information on the product is the internet.
Financing, marketing strategy and future growth all require a well-researched and thought out business plan.
There are many articles and resources available on the Internet explaining how to write a business plan, but writing a business plan is more than merely following a business plan template or copying someone’s business plan examples.Competitive analysis serves a vital role in strategic planning, so writing a great business plan becomes easier if you do your research before you begin to write your business plan.A competitor analysis, unlike the competitive rivalry factor of an industry analysis, focuses attention on each competitor’s strengths and weaknesses instead focusing on the overall competitive climate within an industry.A product feature comparison allows you to compare your company’s product with products produced by competitors.Unlike a competitor analysis that allows you to determine how your business measures up to competing businesses, product feature comparisons limit their focus to the products themselves.Business owners of new startups or established companies can benefit from thinking through and researching such success-determining issues as: From this list you quickly realize that a business plan is more than a document a business uses to get financing or to attract investors.It is a roadmap of how your business will operate in order to succeed.This gives you the chance to evaluate your competitor’s sales process while you are acquiring the product to test.By using the product, you can compare features on the competitor’s product with those of your own product.Becoming a member of a competitor’s mailing list to receive promotional material and updates on new products and pricing is a quick and easy source of information.The information gathered about competitors might not seem like much when looked at separately, but when viewed as a whole, it can be mosaic-like in what it reveals about your competition.