Unless you’re business is totally unique, there are other businesses competing for every potential dollar. But there’s no reason to fear competitors. Embrace them and get to know them—it’s the only way to truly grow your business.
Getting to know similar industries in your marketplace is not just about learning how to compete against them, sometimes it’s about forming support systems that benefit both businesses. For example, a local camera store keeps close track on other regional shops so that if a valued client needs a special item not currently in stock, they can order it from the competition, ensuring that their client is satisfied.
The best way to start researching your competition is to compile a list of major businesses in your area that you compete against directly and indirectly. Pick the largest threat to your business and make a list of their strengths.
Some basic questions to ask yourself about their business:
What appeals to you about their location? Is their office appealing? If they’re retail based, how is their signage? What about parking and easy access for their target market?
Can they easily deliver products or services to their market? Service businesses rely on experienced, expert staff. How well are they staffed? For retail or product based businesses, how well are they stocked?
Do they carry the same product lines or offer the same services as you? What services do they offer that you don’t? Is their product line more extensive?
What are their return policies and do they offer discounts? What about warranties or support programs?
How do they advertise? Where do they spend their dollars? How successful is their marketing?
Once you’ve completed this profile for a few of your competitors, create a new profile sheet and move the most effective elements from each of your competitors onto that sheet. Take a long hard look at it and determine what steps you need to take to improve your own business to ensure that you’re the best business in your class.
Remember, regardless of the industry, customers will shop where they feel they are receiving the best value for their dollar, and if you have a firm understanding of your competitors, that might just be you .
Last Reviewed
This article was last reviewed on May 2, 2026 for accuracy and relevance.
