Startup Businesses - January 10, 2012

You may find it hard to focus on much else other than your own company when operating or starting a business or franchise, but looking outside of the box is the first step toward making sure you're a prominent player in your industry. Experienced entrepreneurs know that in order to stay relevant, it's important to research the competition on a regular basis.

Although this might seem like a time-consuming endeavor that may not pay off, putting in the effort to learn about similar companies in your field can help your business grow. Sometimes, your competitors may have thought of an idea that could improve your operations. While it's important to take what you learn with a grain of salt, this type of research can get your mind jogging.

The U.S. Small Business Administration (SBA) states that there are a few key things that you should look for when you initially begin your research. First, determine your competitors' locations and sizes - are similar companies trying to work the local market, or are they big enough to tackle the national sphere?

Next, it might be helpful for you to gauge how your competitors compose their staffs. Some businesses may primarily have part-time employees, while others may need full-time staff members to handle all of their responsibilities.

The SBA also recommends taking a look at the marketing and promotional tactics that other businesses are using in the industry. Are your competitors primarily advertising their goods and services online or in newspapers? Making note of this trend can help you fine-tune your own marketing plan.

Inc.com states that once you have the basics down, you may want to look for ways to keep up with your competitors on a regular basis. Although it requires some effort, it doesn't have to be a daunting responsibility.

One tactic that you can use is social networking. Sign up for websites such as Facebook and Twitter to keep tabs on what your competitors are doing. Often, companies use social networking as a way to stay connected to customers, as well as other companies in the field.

To expand upon this point, you might also want to consider attending conferences and expos to mingle with your competitors and stay in the loop.

It's important to keep your own operations at the forefront of your mind, but expanding your knowledge of the industry and other entrepreneurs can yield several benefits.