Top 5 Tips For Winning Competition Analysis – Restaurant Business Plan Part 3
How will you capitalize on the weaknesses of your competition?
Once you have identified what it is that the competition does not do well, you can list opportunities in your restaurant business plan that will help you grow your business. If you identify opportunities for your business, then you need to include an action plan around how you will implement these ideas. This includes identifying milestones and creating an action plan around those milestones, with key dates, staff responsible, and budget allocated to the achievement of each milestone. This will give potential investors a great answer to how your restaurant will turn the competition’s weaknesses into profitable business growth for your restaurant.
How are your competition likely to respond to your competitive behaviour?
Through your analysis, you need to develop a view as to how your competitors will react to your behavior in the market. It might just be your gut feel, but its important to articulate this in your restaurant business plan so investors will be able to form a view on how sustainable the opportunities are that you have identified from your assessment of the strengths and weaknesses of your competitors.
If you form the view that they are unlikely to react to your behavior in the market, then an investor will make the deduction that your business growth opportunities that you have identified and developed into an action plan, will actually lead to sustainable profit growth for your restaurant. This will help them formulate a view on how attractive your restaurant is an investment.
When completing the competition analysis section of your restaurant business plan, remember to think about the questions your audience will want answered. We have provided a list of things that investors will want to know, to help you secure funding for your restaurant. If your business plan is being written for another purpose, then think about what perspective your audience will take, and what questions that they will want answered about your competition. Then set about answering those questions in your restaurant business plan.