Many online business owners mistakenly think they can skip steps when they are building a business. The main reason is mindset. If you view your business as a gap measure instead of a viable business, you may not spend the time necessary to research your idea, which includes thorough research into your competition before starting, believing you’re not going to make much money anyway. Why bother with all that?
The truth is an online business is a very viable way to run a business. You may earn pocket money for the weekend, or you may make millions. It’s all in how you look at it and how you set it up. You truly can build a multiple six-figure business online, but only if you take it seriously and put in the work needed.
Since the barriers to entry for an online business are much lower, many start-ups fail from the day they begin because they understate the time, investment, and effort it takes to create a profitable online business that generates income and enables the owner to live a more balanced life. There are things you can learn from studying your competition that is essential for your success.
Is Your Idea Profitable?
Many people, especially those without business experience, believe that their new idea will make millions. The thing about a new idea is that it may make millions, but it also may cost millions to educate the public about the latest thing you want them to buy. If you look at history, the person who initially introduces society to the new item isn’t the one who ultimately profits from it.
Unless you have deep pockets, save new ideas for exploration for about 5 percent of your time but focus 95 percent of your time on something already profitable now. If you have competitors that clues you in that it’s a profit-making idea. If you don’t have competitors, it may mean that the investment will be too high for you to make it profitable.
How Will You Differentiate Yourself?
The other thing studying your competition does for you is help you find a way to stand out from the competition through differentiation. You will be so shocked that many of your original ideas have already been done, but don’t let this stop you from creating branding and value different from theirs. Notice the gaps in the value they offer and seek to fill them, and you will be successful.
What Price Point Will I Start With?
While you do not want to compete on a price basis with your fiercest competition, especially if it’s a big business with deep pockets, you’ll want to use the prices you find as a starting point for what you charge your customers because most people are cost-conscious these days. However, if during your research you discover that the price you need to charge is too low to be profitable, you’ve avoided getting started fully implementing this idea so you can find a better option.
What Software Do I Need?
It’s always a great idea to study your competition’s technology use. They may use specific software because it’s an industry standard or have deep pockets that enable them to create their own. However, if you look at the software that they use in terms of the functions it offers instead of the name, you can often emulate what they do on a more cost-efficient basis even if you cannot hire a programmer or know anything about programming.
What Keywords Does My Competition Use and Can I Compete?
The other thing you can learn from your competition is what keywords they use to attract your mutual audience. Maybe you can’t outbid them for these keywords in advertising, but you can use the keywords in your content marketing efforts to help your content, and ultimately your products and services get noticed. Plus, grabbing a list of keywords from your competition can get you started faster than if you had to figure this out yourself from scratch.
Where Do They Find Their Audience and Customers?
Wherever your competition is, is where you need to be. Are they more prolific on one social platform than another? You may either want to fill the gaps on the other platform or determine through research that your audience simply prefers that popular platform over another, which means differentiation is even more important.
About Your Ideal Customer
You can use your competition to find your ideal customers by engaging with them in their groups, going to their events, and reading comments on social media from the customers to the business you’re learning about. Even if you have no customers, using your competition to learn about your customers makes your job easier.
All this information is essential because by studying it through your competition, you can prove the concept works, eliminate the need to educate the audience on a new-fangled idea and get to profit sooner. When you know the competition, it’ll be easier to stand out from them, showcasing your differences while delivering real value to your customers.
READERS LIKE YOU ARE ALSO INTERESTED...
LET US KNOW WHERE TO SEND YOUR DIGITAL PLANNER.