The Business Advisory Blog

The Business Advisory Blog

Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

Vanessa Williams
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Is it the economy or are some competitors doing quite well?

debrief meeting-511If you’re ever in a situation where your revenue or profits are falling year on year, it’s really important to find out why that’s happening.

A common response to the question, “Why is your revenue falling?” is “It’s the economy – it’s really tough out there.”

Our response is to ask if there are any businesses operating in your industry who are actually doing quite well now.

What we’re looking for is what we can learn from what other people are doing, and those ‘other people’ could be your competitors.

It’s really important to do a periodical review of your competitors to find out what they’re doing relative to what you’re doing and seek to learn tips or tricks on what you can do better to grab back some market share.

Here are five ideas to do exactly that:
  1. Ask your team because they’re closest to the coalface dealing with customers – and customers who have probably dealt with your competitors as well as your own business. They’ll be able to give you some feedback as to what they’re experiencing in your marketplace.
  2. Grab some promotional material available from your competitors, including their website, to see what messages they’re sending to the market now. Make sure you’re on the same page as them in what they’re doing.
  3. Ask your customers and suppliers. Find out where you sit compared with your competitors, but make sure you ask them to be honest and constructive in their feedback.
  4. Analyse your strengths and weaknesses, even if that starts with a simple brainstorm session with your team. Write down all of the strengths you have in your business as well as all the weaknesses you have and then pull together an action plan of the top three items you’re going to change.
  1. Get your action plan together and then implement that plan.
As accountants and business owners, we can help you with this – whether that be through mystery shopping, analysis, facilitating workshops or pulling together some reporting for you – to help you better understand what your competitors are doing relative to your business, and always with the goal of helping you improve your revenue and your profitability.
Call Alliotts in Auckland today on 09 520 9200 or read our case study Barber responds to new competition by differentiating.

Topics: competition market profits revenue drivers