I have been planning on opening a business for over a year now, and my entire model was based on two major factors; 1) it does not exist in the town, which is all about artists and local businesses...so perfect match for my cake decorating business idea. 2) The location is central to a ton of foot traffic, which would help spread the word and create some buzz. Obviously there are other things I have considered, but for the sake of my question lets just focus on these two topics. Now, back to my point. Recently, I discovered a similar business has opened in the exact location I was eyeing. I am aware that competition is good for business, and that my confidence cannot be shaken too much to throw me off my intended plan. However, I am making a move to a different State, and investing a large portion of my savings into this...I really cannot afford to fail for many reasons. My question is, like the iconic Gunslingers of old Western movies "Is this town big enough for the two of us?"
AThere should be something that you do that will make you different from the other company.
Also, want to make it clear that I believe the cake world is small, and I believe in being kind and helping each other out...so I would never want to be underhanded or negative towards another business. I simply want to know if it is worth having two similar businesses in such a small vicinity.
It depends on your town and the politics of it. How big is it, and do people spend a lot of time gossiping and being stupid? People will always say there's enough business for everyone but that's load of hooey in some places. I'm sure you have more information about the economics of it if you're thinking of opening a storefront, but there's more to it than economics if you're dealing with a small town where everyone knows everyone else's business.
AHave you considered working for this competing business instead of starting your own? If they have an open position and you want to focus on baking and decorating instead of the administrative overhead of running a business it might be a good option, with much less risk on your part.
AWitch state are you referring to? My business is off of central lol!!