Updated: Apr 21, 2020
In part 1 of Building your Foundation, we discussed the importance of understanding your market. In this perspective, we will discuss what we mean by “Taking Inventory on your Competition.”
Building a Foundation Recap:
The world of business can be a complex and chaotic place. With a sound foundation, you can ensure that your company, not only survives the storms to come, but, emerges even stronger than it was before the trials. Prior to making that leap-of-faith into the market, there are 5 key steps that must be taken.
Understanding the market that you are serving
Taking inventory on your competition
Identifying your unique value proposition
Ensuring that your idea uses carefully thought out technology that will help improve front-end customer experience and back-end infrastructure
Aggressively moving forward with caution.
Part 2: Taking Inventory on your Competition:
Now that your idea has begun to take on a more specified form, it is important to look at other companies within the field, and, take inventory.
Here are some items to consider:
Are they providing similar products or services?
What are their strengths?
What are their weaknesses?
What is their go to market plan?
What is good and bad about their user experience?
Who are their strategic partners?
Are they in the process of adding new features, or, new products into the market?
Often. observing others is the best way to “…go to college for free” – You can improve yourself by learning from the success of other companies; however, most importantly, from their failures. This venture allows you to avoid having to pay the costs for making similar mistakes.
So, remember to take the proper time to study your competition. It will help you understand the past, current, and future direction of the industry.