You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
Direct & Indirect Competitors
The following retailers are located within a 5 mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Joe’s Beauty Salon
Joe’s Beauty Salon is the town’s most popular beauty salon and has been in business for 32 years. Joe’s offers a wide array of services that you would expect from a beauty salon.
Joe’s offers facial treatments, manicures and pedicures, and haircuts and styling. Over 60% of Joe’s revenue comes from services targeted at women outside of hair services. In addition, Joe’s does not offer its customers premium salon products.
For example, they only offer 2 types of skin cleaners and 4 types of moisturizing cream. This puts Joe’s in direct competition with the local pharmacy and grocery stores that also carry these mainstream products. [Company Name], on the other hand, offers numerous options for exclusive products that are not yet available in [Town’s Name].
Lux Facial has been in business for 5 years. Lux Facial offers an extremely high-end facial treatments, with introductory prices of $120 per facial.
However, Lux Facial will primarily be targeting a different customer segment from [Company Name], focusing on the households with an income in the top 10% of the city.
Furthermore, [Company Name] offers many of the services and products that Lux Facial offers, but at a fraction of the price, such as:
- Facial cleaning
- Facial masks
- Intensive skin care spot treatments
- Premium beauty care products from industry leaders
Freddie’s Fast Day Spa
Freddie’s Fast Day Spais located four stores down the road from [Company Name]. Freddy’s has been in business for the past three years and enjoys great success, primarily due to its prime location.
Freddy’s business offers inexpensive facial treatments and neck massages and focuses on volume over quality. It also has a large customer base, with a large percentage beingteens between 13 and 18 years of age.
[Company Name] has several advantages over Freddy’s Fast Day Spa including:
- An entertainment focused waiting room, with TV’s and board games to make the wait for service more pleasurable for children waiting for their mothers.
- A focus on service quality rather than speed alone to ensure repeat visits. [Company Name] will spend on average 20 more minutes with its clients than Freddy’s.
While we expect that Freddy’s Fast Day Spa will continue to thrive based on its location and customer relationships, we expect that more and more customers will frequent [Company Name] based on the high-quality service it provides.
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s location is near the center of town, giving us access to commuters going to and leaving the train station, local office workers, and passersby shopping in the city. We also offer adequate parking making it easy for customers to patronize us.
- Great service at an affordable price: The beauty care services offered by [Company Name] are similar quality to its most premium positioned competitor, Lux Facial. [Company Name] will offer these services at a much more affordable price.
- Management: Our management team has years of business and marketing experience that allows us to market 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, newspapers and other influences. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.