You have to keep a watch on your competitors and predict their moves. However, it is easy to go wrong while doing so.
Making predictions is vital but going wrong will damage your business incredibly. That is why it is important to avoid mistakes as much as possible. The risk is high because businesses tend to take decisions based on those predictions.
Check these tips to be able to make better predictions:
You will accomplish nothing by overthinking about the leaders in your market. More often than not, the market leaders are not your direct competitors and there is no use of keeping a watch on them. It would make much more sense to think about the others who are potential competitors and much more likely to overtake you and lure your potential customers.
Your Focus Should Be On Local Regulations
While federal regulations are important and it is essential to keep a watch on them, local regulations are more important for SMEs. The smaller changes will make more impact than the larger changes, which is why you should know of them first so that you tailor your business accordingly. You never know which regional change may become huge and turn into a national regulation.
New Products Will Only Have So Much Impact
Remember as a general rule that new products will not have a lot of impact. Therefore you don’t need to worry about or predict the new products that your competitors may come up with. Services attract customers more than product, which is why your focus should be on the services you provide. If your services are good enough, customers will automatically be more interested in what you are selling.
The Economy Is Not Universally Favorable Or Unfavorable
Whether the economy is good or bad, it won’t have a universal impact. There are some industries that are benefitted by bad economy while there are others that are impacted negatively by good economy. Therefore you shouldn’t predict the moves of your competitors based on the economy. Look beyond that and understand that everything is not as good (or bad) as it looks.
While analyzing your competitors and predicting their actions, it is vital that you avoid these mistakes so that your predictions don’t lead to your own downfall.
Keep a close eye on your competitors but don’t get so obsessed that you start predicting each and everything, and making decisions accordingly. Be very careful about your analysis so that you don’t inadvertently harm your own business.