A common problem people encounter when writing their
business plan is finding information about their business industry
and competitive companies. Fortunately, in recent years the Internet
has made information gathering simple and easy, but sometimes the
best information is found much closer to home, with real people, in
real time.
Always take a look at other businesses similar to your own, as a
very good first step. If you're looking at starting a new business,
you may well be starting one similar to one you already know. If
you're doing a plan for an existing business, you are even more
likely to know the business well. Even so, you can still learn a lot
by looking at other similar businesses.
- Look at existing, similar businesses.
If you are planning a retail shoe store, for example, spend
some time looking at existing retail shoe store businesses. Park
across the street and count the customers that go into the store.
Note how long they stay inside, and how many come out with boxes
that look like purchased shoes. You can probably even count how
many pairs of shoes each customer buys. Browse the store and look
at prices. Look at several stores, including the discount shoe
stores and department store shoe departments.
- Find a similar business in another place.
Find a similar business far enough away that you won't compete.
For the shoe store example, you would identify shoe stores in
similar towns in other states. Call the owner, explain your
purpose truthfully, and ask about the business.
- Scan local newspapers for people selling a similar business.
Contact the broker and ask for as much information as possible.
If you are thinking of creating a shoe store and you find one for
sale, you should consider yourself a prospective buyer. Maybe
buying the existing store is the best thing. Even if you don't
buy, the information you gain will be very valuable. Why is the
owner selling? Is there something wrong with the business? You can
probably get detailed financial information.
- Always shop the competition.
If you're in the restaurant business, patronize your
competition once a month, rotating through different restaurants.
If you own a shoe store, shop your competition once a month, and
visit different stores.
It takes a little hard work but by using the Internet and doing
some research at local businesses, you should be able to gather all
the information necessary for your business plan.
Related Topics
• Writing a Business Plan
• Do I Need a Business Plan?
• Gathering Information for a Business Plan
• Maintaining a Business Plan
• Business Plan Mistakes
