Information You Should Know About Regarding Your Competition
Posted on November 11, 2010 by My Franchise Law
When starting up a new franchise, it’s important to be knowledgeable regarding all potential competitors in your area. That way, you can strive to offer the best products and services available in the market and capture your share of available customers. Here are several items you, and your franchise attorney, should consider when researching where your business will fit within your chosen marketplace.
- Location: Where are your competitors located? Is there a high concentration of similar businesses in one area, or do you have an edge on the market by being the only one?
- Who: Who have you identified as your competition? Are there several different players, or one major franchise business that you will be sharing customers with?
- Products and Services Offered: Find out what products and services the competition is offering and the price points for these items so that you can determine where you stand in comparison.
- Advertising: Examine what type of advertising your competitors are utilizing, and if their advertising efforts are successful before determining how to best set up your own advertising strategy.
- Revenue: Find out what the average expected revenue is for each of your competitors so you can determine how much business you can generate and anticipate, thereby gauging your own success in the market.
- Marketing: Do your competitors send out coupons, flyers, or emails to attract potential consumers? What methods are they using to get customers in the door?
- Setup: Find out how your competing franchise owners have organized their internal systems, along with what kind of computers, equipment, software, and training practices they have in place so that you can determine if they have an edge in technology or customer service.
- Overall Assessment: You will want to evaluate both the strengths and weaknesses of your competitors to determine what areas to focus on within your own franchise business. You will have to be at the top of your game when going head-to-head with the strengths of your competitors, so make it a point to advertise how well you stack up, and differ, from your competitors.