Competitors are one of your largest business threats. You have to know who your competitors are and how they operate. You will use this information to decide how to position yourself, where you price yourself, and how you're perceived by your marketplace.

Competitor Analysis

When you research your competitors you should list what kinds of companies are your biggest competition. Possible competitor types you should consider are:

Big PC manufacturers

Computer consulting moonlighters

Established computer consulting businesses

Software producers and distributors

Once you decide which types of competitors pose the most threat, go through the list and identify specific companies in each category that you consider to be significant competitors.

When you have a good idea who exactly your largest competitors are, then you need to find out how they operate. You need to uncover their biggest strengths and biggest weaknesses. You want to be able to exploit their weaknesses. In fact a lot of your business value will come from exploiting your competitors' weaknesses.

Listen to what people are saying in the large electronics stores and warehouses. Talk to your friends, family, coworkers, and acquaintances.

What are they saying about computer support?
What are they complaining about?
What causes them frustration?

Use this information to be better than your competitors. You need to understand how you can be better than your competitors and then use that information to fit yourself into the market.

The Bottom Line on Competitors

Competitors will always be around. Your job as a new business owner is to understand how you fit into the market. Figure out where your competitors are strong and where they are weak. Then exploit your competitors' weakness by positioning yourself as the obvious, better alternative.

Copyright MMI-MMVI, Computer Consulting 101. All Worldwide Rights Reserved. {Attention Publishers: Live hyperlink in author resource box required for copyright compliance}