Small business expert Kim T. Gordon

Size Up the Competition
A simple, 4-step competitive analysis will help you rise above the pack

By Kim T. Gordon

Contrary to what some may say, growing a business is not a blood sport. It's not about killing the competition or winning at all costs. The fact is, successful competitors tend to meet on a more common ground, sometimes collaborating one day and bidding against each other the next. The key to winning market share is to differentiate your small business by providing products, services, or solutions that your best prospects will find more desirable than what's offered by your closest competitors.

Suppose you call a new prospect and she tells you she's buying from your competitor... is that good or bad news? Believe it or not, that's good news because it means you've found a qualified prospect. Experienced marketers know it's always easier to fill a need than to create one. Someone who is already using the type of product or service you offer is a great prospect because he or she has a clearly defined need and can afford the purchase.

The job of convincing qualified prospects to buy from you instead of your competitors is where the real work begins. Follow these four steps to complete a simple competitive analysis that will help you uncover the information you need to effectively differentiate from -- and position against -- the competition based on your own unique selling points.

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Kim T. Gordon's columns and articles are read by millions of small-business owners each month. She is a small-business expert and the author of four books, including Maximum Marketing, Minimum Dollars: The Top 50 Ways to Grow Your Small Business.

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