Staying ahead of your competition means knowing just what they’re up to at all times. An easy way to do this is by using what experts call “competitor intelligence.” It’s legal. It’s often very inexpensive. And, it works.

Get Inside Your Competitor’s Head
Competitor intelligence is far from a luxury and, at times, may even be a critical ingredient of home business success today. Think about it: Only through knowledge of your competitors’ products, market penetration, and strategic strengths can you effectively position your own products and services in the marketplace.

Acquiring competitor intelligence is a four-stage research process:
·  Examining public information
·  Accessing commercial databases
·  Personal observation
·  Consultation

If you’re running a small to mid-sized home business, you’ll probably be able to obtain the information you need at the first stage or two.

Methods of Gathering Competitor Intelligence
An amazing variety of information about your competitors is available at your fingertips right now. As a simple starting point, know your trade. This means reading industry and local business publications (which may cover your competitors) and listening to competitor scuttlebutt in your community.

Here are a few ideas to learn more about your competitors — easily and inexpensively:

·  Listen, listen, and listen . . . carefully. You’ll learn a lot about your competition (and about your own company) when you talk with your customers, manufacturers, distributors, etc. and with those of your competition.

·  Go to trade shows or conferences and visit competitors’ booths. Be sure to collect all available literature. You’ll learn about new products, marketing strategies, and the latest industry rumors.

·  Buy your competitor’s products. Test them, take them apart, and analyze their quality and the production methods used. Or, if your home business is service oriented, analyze competitors’ literature to learn their strategic plans.

·  Contact your chamber of commerce for information on local or regional competitors. You can find out the names of company owners, number of employees, reputation, and history, including a record of participation in civic activities.

·  Search trade journals and newspapers for articles on the competition. Look for pieces on new products and patents, personnel announcements, event calendars, and industry surveys. Also, annual reports are a great source of information. Many of these resources are available at your local and university libraries.

·  Consider a general Internet search. This might take a variety of forms. Using one or more of the popular search engines, you might scan the Web for key words relating to your industry — usually the names of competitors or products. Check industry-specific electronic bulletin boards for comments about your competitors; read anecdotes, advice, and information about competitor strengths and weaknesses. Internet information drawn from “paper” databases (such as credit records or electronic reprints of published articles) is usually quite accurate, and often very thorough.

Insider Tips
The secret to cost-effective competitor analysis is to identify exactly what you need to know, and zero in on that data crisply and efficiently. Then, you can use that information to help achieve your own business objectives.

Here are some common questions you might answer through a competitor analysis:

·  What are the unique selling propositions of my competitors? What can they do that I can’t?
·  What are my competitors’ customer service capabilities?
·  What key marketing strategies do my competitors pursue? Do they tend to focus on particular segments of the buying population? What media buys does my competition make?
·  What is my competitor’s market share? Is it going up or down? Why?
·  What is my competitor’s vision of the future? Does it include expansion plans?

As you ponder these business intelligence gathering opportunities, remember that you need not — and should not — pursue all of them. The secret is to identify a select few intelligence-gathering strategies that you can call your own. Work those strategies into your day-to-day routine. Make it a point to ask a competitor-related question or two of a visiting sales rep or spend time gathering competitor information from the Internet once a week.

The result: You’ll learn how to stay a step or two ahead of your competition. You’ll also learn more about your own hidden business potential. HBM

The American Home Business Association is a membership organization that provides services and benefits to those working from home. Services range from financial and tax programs specifically tailored for home-based businesses to comprehensive health insurance programs. For more information, visit www.homebusiness.com.

Previously published in the December 2006 issue of HOME BUSINESS® Magazine, an international publication for the growing and dynamic home-based market. Available on newsstands, in bookstores and chain stores, and via subscriptions ($15.00 for 1 year, six issues). Visit www.homebusinessmag.com