1. Identify your competitors
Start by building a rough list of competitors. You’re probably aware of your local competitors, but it’s always a good idea to dig a little deeper. Search on Google, or use websites like BuiltWith. Look for competitors by using keywords related to your business niche. Storing this data in spreadsheets makes it easier for you to organize and analyze later.
You should categorize your competitors as primary, secondary, or tertiary competitors. Your primary competitors are your business’ direct competitors. They have similar products or services and share the same target market. These competitors will be the reference brands for your audience when they think about your business.
Your secondary competitors are your indirect competitors. These are the companies that sell similar products and services but to a different target audience. And finally, tertiary competitors share the same target audience as your business, but they don’t offer the same products or services.
These businesses don’t directly compete with your brand, but they may become future competitors if they decide to expand or change their business. It’s a good idea to check in on these tertiary competitors every once in a while. Tertiary competitors could also become potential partners in the future.