I am trying to start my business plan (anyone want to do it for me, dang its confusing) and it seems like I need to do a Competitive analysis? Without going into a lot of detail (I am paranoid and know there are some locals on here, lol) the idea that I have is not unique but it is for my city. So if I do an analysis it would seem to be blank and I don't want to seem like I am not doing my work.
my daughter had to do one for her college class..don't forget the local stores do cakes....get their prices, call a couple private bakers and inquire their prices, if you can't do this have a friend call....local bakery too.
It's a lot of work, but it s a good thing,
Even out in the country, there has to be somewhere where these people buy specility cakes. Whether it be Walmart, Sams Club or traveling to a nearby city that sells. That, even if it doesnt seem like it, is competition. So to do your analysis, find out what their pricing is on cakes. Make sure your comparing apples to apples, not oranges! Like a premade frozen cake might not be competing against someone who wants to specialize in cupcakes or cookies.
Also, check out Ealene's website. She has some good tips on there for starting out and there are several books out there too, that can help. But if it ends up being way to confusing, they do have people you can pay to do this sort of thing! And good luck!
If you are focusing on a specific niche market, chances are you will still attract some customers from outside your niche, and that's where you will be competing with others -- for example, if your unique product is priced at a premium but there are substitute products available for less (not necessarily the same as yours, but could at least partially meet the same need) that's something you need to consider.
There could also potentially be competition from people acquiring the skills to make the product themselves, or competitors could expand into your niche (especially if the barrier to entry for this unique product is low). Some what-if scenarios might come in handy here.
Giving some more details about your idea might help, but I understand your reluctance to post your idea in a public forum.
The lack of competition can be part of your analysis. This gives you the opportunity to describe why your business can be successful -- you're filling a void.
thanks for the replies! In short I plan on doing custom cupcakes with a focus on all kinds of gatherings (work, school, b-day etc) with delivery in a fun and custom way. Yes we do have the grocery stores that sell cakes and only 2 private bakeries that sell cupcakes (very poor ones, if I do say so myself!) I guess I need to use those as competition even though they are not? I may need to stop thinking so specific, lol.