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 companies do business within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Carl’s Machine Shop
Carl’s Machine Shop is a machine shop in [Location]. In business for over 40 years, Carl’s Machine Shop focuses on providing custom fabrication and repair services to local individuals. They help with all sorts of projects, from automotive to furniture.
Carl’s Machine Shop’s services are generally for customers at the upper end of the market who are looking to customize their expensive cars, furniture, and other objects. As a result, the company’s prices are quite high and are not realistic for the average middle-class resident or business owner. We will price our services more moderately, attracting the customers who are priced out by Carl’s Machine Shop’s services.
Machining Skills Inc.
Machining Skills Inc. is a small machine shop that primarily serves the local construction industry. Established in 1997, the company offers a wide range of machining services, including prototyping. They do not serve individuals nor specialize in repair services.
Though we expect Machining Skills Inc. to continue to thrive, we plan to price our services more moderately, making us an active competitor with the company. Our management team also has better relationships with the industry and experience that will make [Company Name] a more appealing option.
Raise The Bar
Raise The Bar is a local machine shop that provides a variety of machining services for local businesses. They primarily work on construction projects but help out businesses in other industries as well. Raise The Bar is known for its well-priced services and high-quality fabrications.
While Raise The Bar will continue to thrive in the local community, it does not offer any services to individuals. Furthermore, our management team has strong relationships with local businesses that will make our services more appealing than this competitor.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. Those advantages include:
- Customer-Focus: [Company Name] contractors provide the highest quality customer service focused on transparency, communication, and responsiveness throughout the process, from the initial inquiry to the follow-up once the project is completed.
- Management: [Founder’s Name] has been extremely successful working in the machining industry and will be able to use his previous experience to help clients with whatever they need. His unique qualifications will serve customers in a much more sophisticated manner than many of [Company Name]’s competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, real estate developers, and business owners. These relationships will help the company build a significant customer base.
- Affordability: Even though local businesses will make up most of our sales, [Company Name] still strives to be an affordable option for local individuals as well. We strive to be the best neighborhood machine shop that can help individuals with all their machining needs for an affordable price.
