Both of these fall under the market research category of your business plan.
Once you figure out who your competitors are, it will be easier to determine how your company will be different from them.
If you have superior quality, there is a market for that as well.
Competitive analysis should be conducted simultaneously with identifying your target audience.
This section should be pretty concise and no more than three or four paragraphs. Although you may think everyone will love your idea, that’s not a viable business strategy.
One of the first steps to launching a successful business is clearly .
For example, you may start by saying your target market lives in North America, and then narrow it down to the United States.
But as you continue going through your market research, you can get even more specific.
Due to this tunnel vision, they don’t take the necessary steps to conduct the proper research. But if you take the time to write a business plan, you may discover there’s not a viable market for your startup before it’s too late.
It’s much better to learn this information in these preliminary stages than after you’ve dumped a ton of money into your venture.