RESOURCE CENTRE

Feedback from our subscribers tells us that the topics we discuss in these bulletins help you focus on the important aspects of running your enterprise, following your business plan, or developing your business idea.

Which is great, but also corroborates what we have seen over the years when working with thousands of new business start ups and looking at their ideas, plans and approaches to getting an enterprise off the ground. That is the tendency for new entrepreneurs to fail to focus on or even consider one really vital aspect of their business and the market they want to enter ... competitive intelligence.

"Competitive what?" you're muttering. "And what exactly do you mean by that?"

We mean they haven't got a clue about what their competitors are up to or planning to do, and in a lot of cases they don't even know who their competitors are. And as a result they are unable to act on any information about their competitors to give themselves any sort of marketing or other business advantage.

Generally speaking, market research is the weakest area in any business plan, and researching competitor activities is an important part of this. Failure to know enough about your competitors, and to be able to compete effectively in your chosen market sector, is ultimately going to contribute to the failure of your new business.

So why does this happen? Why do so many entrepreneurs not bother to keep tabs on their competitors' prices, products, USPs, marketing tactics, special promotions, staff capability and so on? Well, it's probably not that they don't want to do this, it's just that they don't know how to, think they can't afford to, or think they haven't got the time to do it.

The problem with carrying out competitive intelligence for a new start up or existing small business is that it's time consuming and doesn't appear to deliver any immediate results, or any information quickly enough for you to act on.

But the reality is that this is a really important part of your business activity. It is a rare enterprise that has the luxury of no competitors, and even then this will be short-lived. Every small business will have competition either locally or further afield, or internationally in the case of Internet businesses.

For a locally operating enterprise, you must keep tabs on the direct and indirect competition in your area, continually looking for ways to differentiate yourself. This might be in terms of opening hours, customer service levels, more frequent advertising, or finding a competitive edge through special offers, promotions and bonuses. Although competing on price is important, and often essential, it is usually a far more profitable strategy to try and find ways to compete on service, quality and the real or perceived value you can offer your customers that your competitors can't match.

Can you describe what your competitive advantage is at the moment? Probably not, we'll guess, although you are certainly not alone in this.

Local competitive intelligence should be easy enough for the majority of smaller enterprises to do. However, nationwide competitive research will, at first, appear to be a little bit more daunting.

But the fact is that every small business can do this effectively and on a shoestring budget as well, and as a result can ensure that they not only compete with but also get a real edge over their rivals no matter where they are located or how big they are.

A great way to start doing this is through some online research and networking in the right places. You might also want to try mystery shopping with your competitors, but be wary of the legal situation and ensure you don't lie about who you are.

Attending trade exhibitions, particularly the biggest national events in your sector, is another effective way of gathering competitive intelligence for your industry.

Click on www.exhibitions.co.uk to link to a directory of national industry events in the UK, and see www.exhibitions.com for details of trade fairs and other events in Europe and beyond.

Your online research into competitor activity could start by using Google or any of the other major search engines. As well as just searching on your competitors' business names, it's also really worthwhile typing link:www.nameofyourcompetitor.com or .co.uk into the search box. This will give you a list of all the websites that link to your competitors' sites. This is an excellent way of finding out which firms are interested in them or doing business with them already.

You could also broaden your research by looking at something like www.marketresearch.com, which links you to over 50,000 publications from hundreds of leading research firms. They also provide a free e-mail alert service covering new research, developments and trends in your industry.

You can also analyse how your competitors' websites compare against your own and those of other firms in your sector, and see where else visitors to your site go for similar information or a similar service, by using the excellent research tools available on www.alexa.com. This is a must-visit site for any competitive research.

Apart from spending a lot of time using the Internet to find out what your competitors are up to and what is going on in your industry, the other main way to do this type of research is by talking to people. This involves asking other people about what they know or can find out about your competitors. You should include your friends, family and employees in this - they can help you by becoming the eyes and ears of your business.

The other obvious place to research your industry is by joining a relevant trade or professional association, which will have a list of other members who are suppliers in your sector. Go to www.taforum.org or www.britishservices.co.uk/associations.htm to find the website for your sector.

The best piece of advice we can give is to leave no stone unturned when you hunt for information about your competitors, and that your objective should be to try and keep yourself at least one step ahead of everyone else.

And why not talk to your competitors directly on a totally up-front basis, as there may be mutual opportunities for collaboration and joint marketing. You'll probably be pleasantly surprised at how many people will not see you as a threat and are quite willing to talk about opportunities. There's no better way than this to find out what the key players in your sector are up to.

If you'd like some help or information about competitive research in your sector, please e-mail our team at enterquest@cobwebinfo.com.

Please keep the feedback and your questions coming through to us, which will be treated with complete confidentiality. Your feedback also helps us to keep this bulletin and our other services focused on exactly what you need.

Weekly business tip

Keeping safe from identity theft

Identity theft is the fastest growing type of fraud, and the Home Office estimates that it takes over 300 hours for a victim to put their records straight again. Most business owners think, "It'll never happen to me". But identity theft is happening every day to businesses all over the world, and it makes sense to be alert and to take precautions to protect your business identity.

If you manage your business accounts online, the easiest way for identity thieves to target you is through your online bank account, in a trick known as 'phishing', where users are conned into giving away sensitive bank details on fake websites or through phoney e-mails.

Victims of phishing receive e-mails that look as if they're from the bank. These messages contain a link that directs users to a replica of their bank's real website, with a very similar URL and virtually identical layout, logo and so on. Anyone who clicks through and enters their bank account username and password unwittingly logs these sensitive details on the site, where they can be recorded and used by fraudsters to access - and empty - the real accounts.

Business identity fraudsters don't just steal the identity of a single person so that they can use their credit cards and bank accounts (although this does happen to many businesses). The successful business identity thief might masquerade as your company in order to buy or sell goods, thereby making money or conning customers out of it by stealing your hard-earned name and reputation.

With business identity theft increasing at a frightening pace, it's essential for the astute entrepreneur to be aware of what you can do to protect your identity.

Here are a few tips for staying alert and protecting your identity from fraudsters:

• Make sure you know your bank's genuine website address off by heart. Phishing e- mails may try to redirect you to a site that looks familiar, and whose address is very close to your own bank's website address. For example, a Lloyds TSB customer might not think there's anything strange about being directed to www.lloydstsb-bank.co.uk - unless they knew that the bank's real, and only, web address is www.lloydstsb.com.
• Get to know the style and appearance of your bank's e-mail correspondence. You'd notice if a handwritten envelope arrived from your bank manager - so be aware of any changes, discrepancies or unusual errors in electronic correspondence supposedly coming from your bank.
• Remember that a reputable bank is unlikely ever to ask for your password in an e-mail. This is also true of large companies like Amazon, eBay and PayPal.
• Find out what guidance your bank provides for business customers. The banks are being urged by the Government to educate their customers and raise awareness of current scams - so find out whether yours has published guidelines or has a specialist adviser who can talk you through the issues surrounding identity fraud.
• If you do suspect that a website advertised in an e-mail is dodgy, don't be tempted to visit it just to check it out. Even if you don't enter any personal details into a bogus website, it may be able to put some spyware on your computer that can monitor other websites you visit and log the information you entered. The simplest thing to do if your instincts tell you that an e-mail is dodgy is to delete it permanently.
• Keep an eye on your paper correspondence as well. Make sure your business and personal bank statements and credit card bills are disposed of in a secure way - such as shredding - as this is another way in which identity thieves can get their hands on sensitive personal information.
• Choose a logo for your business that is unique and difficult to replicate, as this will make it harder for identity thieves to pose as you.
• The Home Office is planning to set up a website this summer with advice on how to avoid becoming a victim of identity theft, and what to do if you are caught out. We'll keep an eye out for this, so watch this space.

Discover how to promote your business on a shoestring Are you struggling to attract new customers to your small business? Do you have a great product or service but aren't sure how to let prospects know about you? You can attract more new customers, sell more to existing customers, and bring back your customers more often - no matter what product or service you sell. Click here to find out how The UK Small Business Marketing Bible can help you double your sales

New business idea

Each week we provide you with summaries of some popular or emerging business ideas in the UK.

Here is this week's idea:

• Speed Dating Event Organiser

Just one word

Regularly improving your vocabulary is not just about learning a new word and its meaning. It will improve your general knowledge and make you feel and act smarter in all sorts of personal and business situations.

Do you know the difference between the two commonly mixed-up words 'discreet' and 'discrete'?

Which word means separate or distinct, and which means tactful or diplomatic?

Answer at the end of Bulletin.

Did you know?

Data protection scammers are targeting small businesses...

Unscrupulous firms are trying to cash in on business owners' confusion over data protection legislation. The rogue firms, which call themselves 'data enforcement' agencies, are scamming businesses out of hundreds of pounds by sending threatening letters demanding a cash fee in return for registering mandatory data processing information. Under the Data Protection Act 1998, all companies keeping personal information must notify the Information Commissioner's Office (ICO), but the real fee is only £35.

For a list of companies the ICO has received complaints about, visit:
http://www.informationcommissioner.gov.uk/cms/DocumentUploads/Do%20not%20be%20duped%20by%20data%20protection%20scam.pdf

For guidance on data protection law specifically designed for small businesses, click on:
http://www.informationcommissioner.gov.uk/eventual.aspx?id= 6111&expmovie=1

... businesses warned of health and safety scam ...

The Health and Safety Executive (HSE) has warned businesses to ignore a mailshot that is being sent out by phoney firms claiming to regulate health and safety legislation. Three companies have sent letters to businesses across the UK demanding between £125 and £249 in fees for compliance packs. The HSE does offer a real health and safety advice pack to businesses, but this only costs £30.

For more details about the scam, go to:
http://www.hse.gov.uk/press/2004/e04053.htm

... and scamming spam is on the increase

Small businesses are being targeted by spammers recommending stock market shares, according to spam detection firm Clearswift. The latest 'Spam Index' shows an increase in spam containing bogus financial tips. It is believed that the spammers responsible are attempting to hike up the value of stocks in volatile smaller firms by encouraging inexperienced traders to invest. Clearswift says that the current buoyancy of the economy may be encouraging investors to pay attention to the advice.

For more details about this scam, go to:
http://www.clearswift.com/news/PressReleases/476.aspx

Worth a visit

Tiny URL

If you're having problems with long URLs on your website and broken links in long URLs when you send e-mails, or would like to hide your URL, then this website will create a tiny URL for you that will never break and never expire.

To find out more, go to:
http://www.tinyurl.com

Credit reference information online

The Credit Reporting Agency provides access to publicly available consumer credit reference information, such as electoral roll information or details of bankruptcies, online. Businesses can register free of charge and perform background checks on potential employees or customers, and can also benefit from the comprehensive Frequently Asked Questions section, which includes a guide to the jargon used in credit referencing. Go to:
https://www.creditreporting.co.uk/business/

Business Startup 2004, NEC Birmingham, 8 and 9 May

Anyone considering starting a business or expanding an existing one will find help and insights at this event. The show includes Franchise Village 2004, and there will be information and advice available on virtually every aspect of starting and running a business, including preparing a business plan, raising finance and controlling cash flow. You'll find us among the exhibitors on stand 423, so come along for a chat.

For more details, go to:
http://www.bstartup.com

BBC Good Homes Show, NEC Birmingham, 20 - 23 May

Product ideas and new features for the home that may prove inspirational for budding entrepreneurs are highlighted at this show. It includes a showhome village, a food and drink village, fresh ideas for room designs, a DIY Academy, and a celebrity theatre.

Find more details at:
http://www.bbcgoodhomesshow.co.uk/

Worth a read

The newest edition of this book has been written specifically for UK consumers, but as a business owner you can also benefit from its practical, plain English style. It focuses on avoiding identity theft, providing tips for spotting the warning signs and a victim assistance guide with details of who you need to tell if you do fall prey to a scam. Check out:

This is an excellent book if you're thinking about starting up a home-based business or are looking for some new ideas about the type of business you could run from home. Reviewers consider this to be the best book of its type for UK readers. Check out:

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Good luck

The EnterQuest Team

This information is meant as a starting point only. Whilst all reasonable efforts have been made, the publisher makes no warranties that the information is accurate and up-to-date and will not be responsible for any errors or omissions in the information nor any consequences of any errors or omissions. Professional advice should be sought where appropriate.