V. Competitive Analysis
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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:
Laney’s Medical Spa
Laney’s Medical Spa is the town’s most popular medical spa and has been in business for 32 years. Laney’s offers a wide array of services that you would expect from this type of establishment, including body sculpting and microdermabrasion.
Though Laney’s will continue to thrive, the most common complaint about this business is that it has become too big. It no longer provides the personal customer service touch it once did and doesn’t have a welcoming or warm environment. [Company Name] will be more attractive to customers who are put off by this by offering a friendly environment and developing a client-based business model.
Fresh Faces has been in business for 5 years. Fresh Faces offers extremely high-end beauty treatments that are designed to appeal to the most affluent residents of [location]. This medical spa offers many of the same treatments as other competitors but also adds additional products and extras that bring up the rates significantly.
Though Fresh Faces appeals to the most affluent residents of [location], the prices keep many interested customers from frequenting the business. The treatments at [company name] will be of the same quality but be more moderately priced.
Freddie’s Beauty Spa
Freddie’s Beauty Spa is a spa for everyone. It includes traditional spa services (such as facials and massages) as well as medical treatments (like body contouring, laser hair removal, and cellulite reduction). It’s a large spa with a giant staff to accommodate the needs of everyone who walks in their doors.
Though Freddie’s offers medical beauty treatments, it is only one category of treatments that the business offers. Therefore, the company does not specialize in these services. Customers looking for more skilled aestheticians will be eager to frequent [Company Name] instead.
[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 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 a medical aesthetician, 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 by most competitors.
- Relationships: Having worked as a medical aesthetician for [X] years, [Founder’s Name] has developed a loyal client base, with many former clients already agreeing to frequent the business once it opens.