| A common problem people encounter when | | | | discount shoe stores and department store shoe |
| writing their business plan is finding information | | | | departments. Find a similar business in another |
| about their business industry and competitive | | | | place. Find a similar business far enough away that |
| companies. Fortunately, in recent years the | | | | you won't compete. For the shoe store example, |
| Internet has made information gathering simple | | | | you would identify shoe stores in similar towns in |
| and easy, but sometimes the best information is | | | | other states. Call the owner, explain your purpose |
| found much closer to home, with real people, in | | | | truthfully, and ask about the business. Scan local |
| real time. | | | | newspapers for people selling a similar business. |
| Always take a look at other businesses similar to | | | | Contact the broker and ask for as much |
| your own, as a very good first step. If you're | | | | information as possible. If you are thinking of |
| looking at starting a new business, you may well | | | | creating a shoe store and you find one for sale, |
| be starting one similar to one you already know. | | | | you should consider yourself a prospective buyer. |
| If you're doing a plan for an existing business, you | | | | Maybe buying the existing store is the best thing. |
| are even more likely to know the business well. | | | | Even if you don't buy, the information you gain will |
| Even so, you can still learn a lot by looking at | | | | be very valuable. Why is the owner selling? Is |
| other similar businesses. | | | | there something wrong with the business? You |
| Look at existing, similar businesses. If you are | | | | can probably get detailed financial information. |
| planning a retail shoe store, for example, spend | | | | Always shop the competition. If you're in the |
| some time looking at existing retail shoe store | | | | restaurant business, patronize your competition |
| businesses. Park across the street and count the | | | | once a month, rotating through different |
| customers that go into the store. Note how long | | | | restaurants. If you own a shoe store, shop your |
| they stay inside, and how many come out with | | | | competition once a month, and visit different |
| boxes that look like purchased shoes. You can | | | | stores. It takes a little hard work but by using the |
| probably even count how many pairs of shoes | | | | Internet and doing some research at local |
| each customer buys. Browse the store and look | | | | businesses, you should be able to gather all the |
| at prices. Look at several stores, including the | | | | information necessary for your business plan. |