V. Competitive Analysis
This Section's Contents
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
Direct & Indirect Competitors
The following establishments are located within a 10-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Shannon’s Beauty Salon
Shannon’s Beauty Salon is the town’s most popular beauty salon and has been in business for 32 years. Shannon’s offers a wide array of services that you would expect from a beauty salon, including manicures, pedicures, hair services, and skin services.
Though Shannon’s is expected to continue to thrive, the salon caters to a wide variety of services and therefore does not dominate the current esthetician market. Their skin care services are not the most popular services they offer, so we don’t expect them to be a major competitor for our customers.
Holistic Spa And Care
Holistic Spa And Care has been the #1 go-to place for holistic beauty services since 2010. The spa offers a wide variety of services, including reiki, massage, manicures, esthetician services, and more.
Though Holistic Spa And Care will continue to be a thriving business, most customers frequent the business for non-skin care products and services, so they will only be a minor competitor for our clientele. Furthermore, their pricing is much higher than ours, which will deter many clients from trying out their services.
Freddie’s Skin Renewal Spa
Freddie’s Skin Renewal Spa is an independently owned esthetician spa. It is run by Freddie, who operates as the owner and sole esthetician. Freddie offers many of the services that [Company Name] offers, including facials, waxing, and cryotherapy. Despite being a small business, Freddie has maintained a great reputation and returning client base for the past ten years.
Since Freddie is only one person, he has a small client base and, therefore, will not be a major competitor for our customer base. Furthermore, he charges much more than [Company Name] will for his services, which will make [Company Name] far more competitive.
[Company Name] enjoys several advantages over its competitors. These advantages include the following:
- Location: [Company Name]’s location is near the center of town in a location that is easily accessible by car, foot, or public transportation. We also offer adequate parking making it easy for customers to patronize us.
- Great service at an affordable price: The skin care services offered by [Company Name] are of similar quality to its most premium-positioned competitors. [Company Name] will offer these services at a much more affordable price.
- Management: Our founder has years of experience as an esthetician, so she knows how to operate and market this kind of business. She also is very skilled at her services and provides better quality care than services offered at most competitors.
- Relationships: Having worked as an esthetician for [X] years, [Founder’s Name] has developed a loyal client base, with many former clients already agreeing to frequent the business once it starts.