Much has been talked about opening a business and its benefits. In reality, starting an enterprise has become easier nowadays. If someone has a few savings or the help of borrowing, then locating a business will not become a difficult task.
The most significant thing that matters a lot is sustaining your company at the comfortable level and taking it up for further growth. Many entrepreneurs started well, but they could not manage the growth of their companies. Consequently, they either have to shut down their venture or rejoining employment.
If you are also on the same page and new in the business world, then keep making strategies for your development ahead. We are not talking about doing it early, but at least, step-by-step.
One of the most critical factors in business growth is the Competitor Analysis. Yes, it is an essential point to consider. It would be better if you always include it in your business planning.
Competitor Analysis: A Brief Explanation
It is the process where a company conducts in-depth research of what its competitors are doing with what planning.
This procedure helps to analyse two vital things:
- What are the competitors doing?
- In which things they lack too much?
Now it is the time to take our discussion further on these points mentioned above.
Do not follow what competitors are following
What are the competitors doing? That point, which we highlighted above, is undoubtedly the part of competitor perusal. But at the same time, it is the learning that you should not do the same what your counterparts are already doing.
You are new in the market, and they are doing business for many years. They have a base to attract customers. On the other hand, you have to bring something new in the marketplace to give stiff competition to them. It may be like campaigning of the two political parties to win the elections. They make different agenda to reach towards the common destination.
Let us take another example:-
In the UK, the direct lending marketplace has a vast sphere, and the lenders have the trust of the borrowers. In those lenders, most of them are those who are offering very bad credit loans no guarantor no broker.
Now if you have also started a FinTech lending business and these loans are your one of the products, you cannot survive in the market by providing the same features. You have to create fresh features and advantages to catch the attention of the loan aspirants. It may be related to interest rates and repayments.
Grab the benefit where competitors are weak
In which things they lack too much? The second question that we have discussed earlier is also a part of competitor analysis. You have to keep an eye on the commercial activities of your opponents in the market.
Such a method is crucial because a regular analysis further helps you to grab those points where you competitors are struggling. It may be not very clear for you to understand this.
Thus, here is one more EXAMPLE, and for your ease, we are again taking the example of UK lending marketplace.
We have discussed poor credit loans above, and also said that you have to bring something new to them to attract the borrowers. You can do this by including another section of borrowers and provide a collective product like bad credit loans for unemployed people. It is as simple as you can get.
In that way, you can quickly grab the attention of individuals with low credit score, and they are jobless too. Isn’t it looking attractive to your business growth? It must be.
Now it is the time to do our final analysis
After reading above all the explanation, you understand how much competitor analysis is vital for your business growth. And, we have given two examples of the UK lending market.
Our core point to discuss here is that your business growth does not rely on one or two factors. It relies on multiple factors in which in-depth perusal of your business competitors is among the central part.
You can do this yourself if you know how to do it properly. But, many companies hire specialists, or we can say, marketing specialist, to do the job. If your start-up has the budget, then you can also employ a professional.
In the end, you must have several aims when you started your company last year. Now, 2020 is the time to nurture your business as such so that it can reach the zenith. We have discussed one useful way in this blog, and of course, there are many to follow.