Do you know your competition?

Part of my job is to meet with a number of Yakima County companies in our key sectors such as warehouse and distribution, manufacturing, food processing, health & medical, aerospace and back office operations.  I’m constantly amazed at how well these CEOs, owners, plant managers and CFOs know their business AND their competition.  Just ask the CEO of a large manufacturer or warehouse distribution center how business is and you will get their margins and numbers as well as their competitors. 

Oftentimes, competition is something that new business owners fail to look at when preparing to start a business.  It could be that it’s always been your dream to open a winery or restaurant, you know you have a good idea and you just take a leap of faith that it will be successful because it’s such a great idea, or you have a really catchy name or idea.  If it’s one thing I’ve learned in the past year, knowing your competitors are just as important as knowing your target market.  It is vital that you do your homework on this!

You hear people harp on having a business plan and how important it is.  Granted, it may seem like a pain or something that you don’t need to do.  One of the best reasons to complete a formal business plan is that it forces you to look at areas you might not think are important – like your competition.

If you have an existing business or want to start one, there are resources available to help identify how your competition is doing and how you measure up.  Check with your SCORE office or the local Small Business Development Center and they can get you started in the right direction.