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.
