When starting a business, it’s important to think about who else makes and sells the same products or services as you.
Here’s a good way to start mapping out your competition. List every competitor you can think of, then answer the four questions below. Having these answers will help you set your pricing, figure out where you want to sell, and more.
What if you can’t think of another company that does what you do? Then think about how else your target audience spends time and money. Other activities and products can be competition. For instance, there could be two coffee shops near your school that are both competing again each other to have you buy coffee. But if you only have $2 to spend for Friday’s lunch, you’re probably going to buy a bagel or a burger instead of coffee. Now those coffee shops are competing against your limited resources (money), instead of just each other.
What other types of competition does your product or service face?