Even if you’re convinced that your product or service is unique, it’s highly likely that your potential customers can already find it in one form or another. Your job is to assess thoroughly and objectively who your competition is, what they offer and what factors make your product/service superior to theirs (i.e., your competitive advantage). Then, you must convince potential customers why they should come to you instead.

This analysis will also figure prominently in your business plan. A thorough understanding of these factors is also essential to convince lenders that you have a valid business idea and realistic plans for business success.