Strategic Planning in the Small Business

HO

2-4 (continued)

Unit 2

Table 1-1

Sources

of Capital

1. Personal Savings

2.

Friends onu Family

3.

Manufucturers or

Suppliers

4. Commercial

Bunks

5. Small Business

Administration

6. Leasing Companies

7.

Finance Companies

8. Small

Business

Investment

Companies

9. Business

Development

Corporations

10. Partnership


11. Venture Capital


12. Stock Offering

faces. Initially, managers

should determine the

number and

market share

of competing firms in the trade area.

Although

precise

determinations of market

share may not be possible,

some general

understanding of market share

is likely. It is im­

portant to

assess the strengths, weaknesses,

and unique com­

petencies of competitors,

in addition to strategies

they seem

likely to utilize

in the future. One of

the best ways to assess

competitors and relate

their strengths and weaknesses

to one's

own firm is to use a competitive

profile analysis.

This analysis

indicates

the key factors that

affect the fim's success

and pro­

on

vides a comparison of

the competing firms

to orit's own

each of the

factors. The factors chosen

fee consideration

iuay

vary, yet the fifteen

factors listed in Table

1-2 typically ,need

to be considered.

The comparison or rating

does not need to

be extensive

or particularly sophisticated,

but it is important to

provide

a relative assessment.

This profile analysis

provides a

36 Part Ont The Analysis

Phase

179