Competition: map the players in your market

Video: how to map your competitors in the Business Planner.

A plan without competitors mostly raises questions for a financier. Is there demand for this product at all? Or did the entrepreneur not look properly? In practice, every business has competitors, even if they look different from you. Describing them honestly makes your own position more credible.

In this step, you record for each competitor who they are, how they position themselves and how much of a threat they are. The planner then puts everything on a map, so you can see where there is still room in the market.

How to record your competitors

1. 01

   Add your competitors

   Each competitor gets its own line. In the list, you see the price level and threat level right away, so you know at a glance who is most in your way.

2. 02

   Give scores and a rank

   For each competitor, you score the price level, quality level and threat level on a scale of one to five. Optionally, you add a website, a rank and an estimated market share.

3. 03

   Describe positioning, strengths and weaknesses

   What does this player offer, to whom, and what are they good at? And where do they fall short? Those weak spots are often exactly your opportunity.

4. 04

   Read the competitive map

   At the bottom, every competitor appears as a dot on a map of price against quality. Empty areas on the map point to room for your own position.

From competition to SWOT

Above the list is the Translate competition into SWOT button. With it, the AI derives opportunities and threats for your whole business from your analysis. You use them in the SWOT analysis under Strategy. That way, you don't have to think of anything twice, and both chapters fit together.

If you want to look wider than your direct competitors, Michael Porter's five forces model helps. It also looks at the power of suppliers and buyers, new entrants and substitute products.

Example: four players around a salon

The salon in the demo names four competitors: a chain salon a few streets away, freelance hairdressers in the area, a luxury salon in the city center and a barbershop in De Pijp. On the map, the chain salon and the freelancers sit low on price with average quality. The luxury salon sits at the top right. In between, with good quality at a mid-range price, it is quiet. That is exactly where the salon positions itself, with specialist color work and a regular stylist for every client.

• Direct competitors: businesses with the same product for the same client.
• Indirect competitors: alternatives that meet the same need, such as freelancers or online providers.
• Honesty: mention the strengths of others too. It makes your analysis trustworthy.