You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
Direct & Indirect Competitors
The following furniture stores are located within a 10 mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Joe’s Furniture is described by their own marketing as “selection that can’t be beat” and has been in business for 32 years. Joe’s offers a wide variety of furniture and décor options.
Joe’s focuses on national and regional manufacturers that each sell a wide variety of products. Joe’s generally has low, medium and high priced options for each type of furniture or décor. Joe’s does not sell at least 75% of the local suppliers that [Company Name] has spoken with. Joe’s is also located on the outskirts of town and does not offer delivery services, referring customers to third-party delivery companies.
Beautiful Living has been in business for 5 years. Beautiful Living focuses on living room and bedroom furniture items, and does not carry items for other rooms. All items offered are medium or high-end.
Beautiful Living offers much greater customer service than Joe’s Furniture and its salespeople are much more knowledgeable about furniture and home design. However, the location is only 5,000 square feet and, therefore, can offer only a limited selection on-site at any given time. Additional sales are made via catalogue by showing customers other options.
IKEA opened a location five miles way from [Company location] one year ago. IKEA has been successful, selling low-priced furniture primarily to young residents and college students, but is also victim of community backlash. There was a high level of controversy when it moved to town, with a large and vocal group of townspeople believing this move would hurt local furniture retailers.
[Company Name] has several advantages over IKEA including:
- IKEA works on a self-service model and has very limited customer service and sales help
- IKEA requires home assembly and does not offer delivery of furniture
- IKEA’s products are manufactured remotely and feature a Swedish design sensibility, which is not for everyone
We expect that IKEA will continue to thrive based on its location and excitement about a recognizable chain among some townspeople. However, we expect that more and more customers will frequent [Company Name] based on the focus on customer service, local products, and the fact that we are independently owned and operated. Many of those who spoke out against IKEA are likely to support [Company Name] for the very same reasons.
|Type of furniture||Joe's||Beautiful||IKEA|
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Locally-Made Products: [Company Name] will work with the best local suppliers for its items, ensuring that 90% of items will come from within a 100 mile radius of the store. Local residents appreciate this support for local manufacturers and tourists appreciate that they will find items that they cannot find where they are from.
- Management: Our management team has years of business and furniture experience that allows us to sell to and serve customers in a much more sophisticated manner than our competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all of the local leaders and newspapers, as well as furniture suppliers. As such, it will be relatively easy for us to build branding and awareness of our store and to establish a product line.