WHAT IS COMPETITOR ANALYSIS?

To be able to effectively gain an understanding of the market you are preparing to enter, it is vital to have an in-depth knowledge of your competitors.

What is competitor analysis?

Competitor analysis is a critical part of any company’s BUSINESS PLAN. It is an overall assessment of current and potential customers.

A good competitor analysis is a delving process report of the actual market turf that your company must maneuver in order to be successful. And to write a good competitor analysis you must

• Conduct a thorough research
• Be a market savvy technical writer
• Be objective.

 So now you know that you can write a competitor analysis; you should know what to write in the report.

A competitor analysis report consists of mainly five points:

1. A list of your company’s competitors
2. Competitor’s product summaries.
3. The strategies used by competitors.
4. Competitor’s strength and weaknesses
5. The market outlook.

 Let’s understand all these points in brief:

A list of your competitors: The biggest and most important question is who all your competitors are?

Let me tell you who can be your competitors:

• Companies with a product or service, which are addressing similar needs.
• Products/services considered being close substitutes.

Competitors can be divided in 4 parts as follows:

1. Direct competitors
2. Indirect competitors
3. Local competitors
4. Cross-over competitors

Identify your competitors and divide them in these 4 categories, and once you compile the complete list, you can highlight the companies which can be your greatest challenging competitor.

Competitor product summary: Analyze your competitor’s products and services. What products do they sell? What are the features and value of their product?

The strategies used by competitors: Observe your competitors closely. What type of media do they use to market and advertise their product and services? Know their customers. Read their quarterly and annual reports. Combine all these research and you will surely get a complete picture of their strengths and weaknesses.

Competitor’s strength and weaknesses: Well you can find this information in many ways. Check their website. Check their USP. If they are growing so rapidly, so what is it about their product and services that is promoting their growth?

Market outlook: This point should cover that what is the market potential for your company’s product or service? Is it growing or flattening? This portion of your competitor analysis is the measure of market trends for your products and services.

So did you realize till now that the competitor analysis report in your marketing plan is as important as your business? So don’t ignore this report as it will teach you how to overcome new and different challenges.

WHY DO YOU NEED A FINANCIAL MODEL?

If you are starting a business you must have heard about financial modeling. Let me tell you what exactly financial model is and why you need it.

Financial model is a mathematical model which is designed to represent the performance of a financial asset or a portfolio of a business, project or any financial investment.

Firstly let’s know which group of people needs a financial model

There are following groups of users who need a financial model:

• Business owners and entrepreneurs
• Finance and accounting professionals
• Financial modelers and consultants
• Individuals for personal finance

And these are the areas where they need financial models:

• Forecasting future raw materials
• Valuation of security
• Benefits of a merger
• Check the size of market opportunity
• See the roadmap to profitability
• Quantity and predict risk
• Portfolio performance
• Identify undervalued securities

Now the real question is why do you need to design financial models?

Well some entrepreneurs may think that financial models are just a formality, but the reality is that financial models can be essential tools for creating and analyzing the road map, an entrepreneur should follow. Here are some reasons for making a financial model:

1. The running cost in the model can help you to determine how long you can run the business without revenue.
2. It can help you in predicting that; when your business will start bringing in more cash, which is known as positive cash flow.
3. As you will begin to run your business and some of your assumptions prove to be inaccurate, you can update the model to understand your current situation.
4. If you make an effective plan and when your business is functioning then you can understand the impact of change in your plan and you can mitigate the risk easily.

Now you know the value of creating a good and effective business model so do not ignore designing it for you, and if you get any problem in creating it, do not forget Infocrest is always there for you.

If you want to learn financial modeling, remember we are soon launching our financial modeling course.

10 THINGS TO INCLUDE IN YOUR STARTUP PITCH PRESENTATION

Your pitch deck arguably is the single and most important document that you will create in life of your company. It is the first opening document with your potential investors. You can say Pitch deck is the most common language understood by the investors.

So what does a perfect pitch deck look like?

Well there is nothing perfect in this world but pitch decks are always being tweaked to ameliorate for the immediate audience for whom the deck is being presented. So a winning pitch deck is made up of different parts that complement each other perfectly.

Here are the essentials to be added in the pitch deck:

Cover Page: the cover page should have your logo, business name, a tagline.

Company Purpose: Define the company business in a declarative sentence. Summarize all the information and use this opportunity to get your audience interested in your company.

The Problem: describe the pain of the customers, and how your concept will solve the problem. You need to demonstrate that why investors should care about solving it with your company.

The Solution:  Solution describes the value proposition. It should solve the problem you mentioned.

Why Now: Describe why this is the right time to execute your solution.

Market Size: Show the market size for your product. Include profiles of your target customers.

Competition: Every business has competition even if it offers something new and unique. List your competitors and explain how your products and services beat them.

Business Model: How are you planning to make money? Show a schedule when you expect your revenue to pour in. show a list of your various revenue streams.

Team: If you haven’t heard of it read it now. Team! That is what investors are looking for. They are investing in your team and the dedication of your team.

Financials: Unless you are a later stage company the numbers in your projections doesn’t matter but putting together a set of thoughtful projections will enhance your credibility.

The matter of fact is that just be creative and try to avoid a dry, mind numbing presentations. So follow the concept of KISS (keep it short and simple) as at the end content is king when it comes to a deck.

   PS: And if you don’t get the time to write it for yourselves remember   

    

is here to help you for your most important document; Pitch deck!!