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Click on review link by the mini-exam for this unit.

Analyzing the Competition

To understand the income, locations, and other factors in the industry, explore the SBA's tool Analyze your Business (This is a general analysis. In depth analysis and looking at individual competitors is also important.)

Here is the results for a pizza restaurant in Kaneohe, HI

At first glance, it may look like pizza restaurants in Hawaii do much better than the national average. But understand revenue is the total sales. We have higher expenses - particularly shipping charges that other places do not have and these expenses get passed on to the customer. Honolulu may have higher revenues, but in general the rents in that area are higher as well. But still you get an idea of how much money to expect.

Explore other area of this tool, too. You don't need to turn anything in, but you might utilize some of the information in your business plan.

 

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