If you are a business owner, one of the biggest problems that you will face is competing with businesses that are in the same sector as your own. Competitors are the ones you need to look out for as they essentially control how well your business will do in the current market. If you are a smart business owner, then you will do something known as market analysis.
Market analysis is used to figure out who the big players are in the market that your business is based in. Market analysis is essentially scoping out the market and seeing where you fit in, but why exactly do you need it?
To find a gap in the market
These days it is almost impossible to create a completely original business idea and so it is likely that when you set up your business, you are going to face some sort of competition. Though it may be impossible to make a completely original business idea, it is possible to make your business stand out from the others.
Market analysis allows you to take an in-depth look at what the other businesses are offering and you can then change your own business so that you are then offering what they are not. For example, if you live in an area that has numerous hairdressers set up, but none of the hairdressers offer any hair color treatment, you could then see this gap in the market and use this gap to stand out in a very crowded environment.
If you are someone that believes that your idea is completely original, but you are not sure, then you could also use market analysis to check out the local area and the businesses located there. Without market analysis, a lot of people depend on chance which really isn’t dependable.
Work on a pricing strategy
Pricing is one of the most difficult decisions when it comes to owning a business. If you set your prices too low, you won’t make a profit and if you set it too high, people simply won’t be interested in your product/ service.
By looking at the market and seeing exactly how much other similar businesses charge for their products, you can then base your own prices around this. If you live somewhere that has several cbd flower companies, then you may be worried about trying to compete in such a busy market. However, you can simply take a trip to local vendors or even just look at their online prices. By doing this you can then figure out what prices to put on your own product. With products like CBD flowers, you don’t have the luxury of selling for extremely low prices as this is just not sustainable. Instead, you can choose to do bundle offers during the introduction of your business, which will bring customers in. You can then slowly increase your prices over time and increase your overall income.
Another great reason to take part in market analysis is so that you can work on your branding. It is likely that there are going to be a lot of businesses that are not unlike yours and one of your main focuses should be trying to brand your product so that it stands out from the others.
You can make a general mood board of what the branding of similar businesses looks like, from the colors they use to the name of their businesses. Once you have all of this information you can then try to do the opposite of what they are doing so your business can stand out.