Importance of Comparative Study in Startup

How to use comparative market analysis template? It has some major issues like overview, industry description, target markets, etc., which are important for comparative market analysis. In order to complete this analysis, it is necessary to include some more factors as the times change.

Comparative analysis



Who are the key players in this business space? Who are your competitors? If you think you have no competitors, it means you may not have done enough research. You can list direct competitors, indirect competitors, and future competitors, because once you see your success, it is possible to compete. You can specifically categorize your competitors' closest or most notable examples and list some of the things that these competitors are doing in a good or bad way. You can use this information when creating your marketing and branding plans and designing your business website, product, sales process, etc. Your business needs to consider any of the strong points that could protect your position and investment against future competitors.

This part of the comparative market analysis template may include: -

1) Intellectual Property: Proprietary Software, Patents and Trademarks

2) Understanding the law: Do you have a strong team with knowledge of the law? Is at least one co-founder a legal professional?

3) Cost: What are the major capital intensive barriers to market entry?

4) Distribution: What special channels or partnerships do you have?

5) Regulation: What are the rules or regulations for obtaining licenses or regulatory approvals that will keep competitors out?

In this section, you do your SWAT analysis. What are your Strengths, Weaknesses, Opportunities, Threats? You can do all these analyzes against the rest of the market depending on your business. You can create a visual graph of these findings for use in your pitch deck.

Projections

Based on the above findings, prepare the business estimates and projections you want to participate in your comparative market analysis template. Some key questions need to be answered while estimating.

How much should your business be worth?

How much capital will your business be able to raise in your next funding round?

How much will customers pay for your product or service?

How many sales can you expect?

You can also project potential market share and net profit margins. Just make sure these numbers are benchmarked. All of these will then be visible to people through your duty to attract investors or customers.

Trials

In addition to research on the web and third party research, what tests or evidence have you conducted before? Assuming certain things about the business and your interpretation of the data based on them can be dangerous, as this information can often be incomplete. However, often you have to make quick decisions about your business based on all of the above. There is no better option than communicating with customers and taking real tests. If you are not ready for the actual sale, survey the potential customers, collect their feedback.

To summarize, the Comparative Market Analysis Template is probably the most important document you will come across. From bringing together people with the right skills to getting funding, your exact business model, its design and its go-to market strategy all depend on comparative market analysis. Work through this process. Do your research in depth. Get unbiased external opinions from experts who can help you judge things you can't see with your eyes.

After market analysis, it is time to consider a marketing plan. We are engaging ourselves in a business that really has the potential to succeed. This confidence is needed even by the strongest entrepreneurs and the surest way to earn this confidence is through marketing. How to start this process?

The importance of validating your business idea

Entrepreneurs are big risk takers, even if they know that no one is really willing to bet on all of this if they are not sure of winning; At least not in business. It's one thing to set aside some money to have fun, but it's quite another to take risks for the coming year, in terms of your savings, career ascent and income, all the work and the focus of your thoughts. Starting a business can never be less risky; Even with no investment, entrepreneurs can do a lot to prove their point, before putting all the cards on the table to reduce the risk. Even if you have done your market research, read or bought industry reports, as much as possible

As long as you are not good at marketing, you should always keep in mind that this is all based on logic. If you want to build a multi-billion dollar business, you need to raise capital from outside investors and this is a game of validation.