CHAPTER 6 - SCOPE OUT YOUR COMPETITION

Know your competition. They can help you or bury you.

Complementary Products
Show that you have searched out all those companies who offer competitive or related products. Define those who offer complementary products in the same or similar industries. Explain how competitive relationships can be turned into joint ventures, strategic partnerships, buyouts, acquisitions, etc. in the future. Lenders or Investors take comfort in the fact that you have defined possible exit solutions if things don't go as planned.

Who are your three major competitors? Define for each:

• Address
• Years in Business
• Market Share
• Price/Strategy
• Product/Service

Compare your strengths and weaknesses to your competition's. Consider such things as location, size of resources, reputation, services, personnel, etc.

Current Market Share
It is vital that you demonstrate an expert understanding of what your industry is all about.

• Where is your industry going?
• What is the current condition of your industry?
• Why are the current market distributions the way they are?
• What has your competition done to achieve their market share?
• What advertising media is most effectively used by your competition?

Trade Associations
Give a reference to all trade associations that cover your industry. Use material supplied by these organizations to support statements and assumptions you have made throughout your funding request.

List the trade associations that service your industry:

Workbook Main Menu I To Chapter 7