V. Competitive Analysis
Direct & Indirect Competitors
[Company Name] competes indirectly with any service that provides advise and management IT Consulting services for small businesses, including online resources, free mentoring services like SCORE and local SBDCs, and independent consultants. The following small business IT Consulting firms are located within a 20 mile radius of [Company Name], and provide a wider range of small business services, thus providing direct competition for customers:
ABC Small Business IT Consulting
ABC Small Business IT Consulting is anowner-operated business run by Bob Johnson. Having started the business ten years ago, Johnson operates out of his home to keep down costs and meets with small businesses in the surrounding area at their offices. Johnson focuses primarily on mentoring and advisory services and does not undergo detailed research, analysis, and planning for clients.
ABC Small Business IT Consulting has an estimated $150,000 in annual revenue and serves a small subset of area clients. However, its name and focus on small business IT Consulting bring it to the top of local search rankings, leading many small businesses to consider working with Johnson.
Strategic Advisors Inc.
Strategic Advisors Inc., founded fifteen years ago, is now a small and medium business IT Consultingcompany with 250 employees and revenue of $37.5 million. Strategic Advisors Inc. has offices in five US cities and nearest office location is in [city name].
Unlike [Company Name], whose revenues will come entirely from small businesses, the majority of Strategic Advisors Inc. revenue is from medium-sized businesses of 100 to 500 employees. Because of this focus, and the fact that contracts with these medium businesses are more profitable, Strategic Advisors Inc. prefers to only work with small businesses that it feels will grow into the medium-size it prefers and specializes in.
Small business clients go to Strategic Advisors Inc. because of its wide presence on the Internet, public brand awareness, and track record. However, many startups and small businesses cannot afford the fees of working with Strategic Advisors Inc.
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s location is near the center of town, in the shopping district of the city. It is visible from the street where many small business owners and managers walk to and from work on a daily basis.
- Client-oriented service: [Company Name] will have a full-time assistant to keep in contact with clients and answer their everyday questions. [Founder’s Name] realizes the importance of accessibility to his clients, and will further keep in touch with his clients through monthly webinars on topics of interest.
- Management: [Founder’s Name] has been extremely successful working in the management IT Consulting business and will be able to use his previous experience to grant his clients detailed insight small business best practices. His unique qualifications will serve small business clients in a much more sophisticated manner than [Company Name’s] competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, newspapers and other influences.