How Do I Research My Local Competitors Before Starting a Business?
By Bill Stilwell · Last reviewed October 16, 2026
The short answer
Section titled “The short answer”A competitor analysis is a simple record of who else serves your customers, what they sell, what they charge, how fast they respond, where they work, what proof they show, and where they fall short. Start with the businesses that show up on Google Maps when you search your service in your area. Use what you learn to pick a clear reason for customers to choose you.
Why it matters
Section titled “Why it matters”Customers compare you to someone, even if you don’t. Knowing who that is lets you price with confidence, choose an offer that fills a real gap, and avoid entering a market where the leaders are strong in every area you planned to compete on. The U.S. Small Business Administration (SBA) suggests identifying competitors by product line or service and market segment, then weighing their strengths and weaknesses and how hard it is to enter the market.
Covered lines
Section titled “Covered lines”7.5.1 Competitor services
Section titled “7.5.1 Competitor services”What it means: what each competitor sells, and what they won’t do.
How to do it: Search your main service plus your town on Google Maps. Pick the top 5 to 10 businesses. For each, list the services on their website and Google Business Profile, and note what they exclude. “We don’t do flat roofs” or “residential only” tells you where the gaps are.
Common mistake: listing only the services they advertise. Read their frequently asked questions (FAQ) pages and service pages for exclusions too.
7.5.2 Competitor pricing
Section titled “7.5.2 Competitor pricing”What it means: prices, minimum charges, deposits, recurring plans, and payment terms.
How to do it: Collect any public prices from websites and profiles. Note trip fees, minimums, deposits, membership plans, and whether they offer financing. Add this to your price sheet (see 7.4.6 Price Expectations).
Common mistake: comparing a base price to your full price. Line up what’s included before you compare.
7.5.3 Competitor reviews
Section titled “7.5.3 Competitor reviews”What it means: the strengths and complaints that keep coming up, and what customers expect.
How to do it: Read the 20 most recent reviews and the lowest-rated reviews for each competitor on Google and other sites. Tally repeated words: “on time,” “clean,” “never called back,” “surprise fee.” These show what customers value and what annoys them.
Common mistake: posting anything on a competitor’s profile. Google’s policies ban posting content on a competitor’s listing to hurt its reputation. The Federal Trade Commission (FTC) rule on consumer reviews also bans fake reviews. Read and take notes only.
7.5.4 Competitor response speed
Section titled “7.5.4 Competitor response speed”What it means: how quickly competitors answer calls, forms, and messages.
How to do it: Call or submit a simple, honest question to each competitor during business hours, such as asking about availability or whether they serve your area. Record how long the reply took and how it was handled. Don’t book fake jobs or waste their time with made-up projects.
Common mistake: testing only once. One slow day isn’t a pattern. Try at two different times if you can. Then hold yourself to a faster standard (see 16.2.2 Lead Response Time).
7.5.5 Competitor service area
Section titled “7.5.5 Competitor service area”What it means: where competitors work and whether that coverage looks profitable.
How to do it: Note the service areas on their profiles and the towns named on their websites. Search your service in several towns to see where each one shows up. A competitor based far away and listing your town may not serve it well.
Common mistake: assuming a listed town is a served town. Check reviews for mentions of that area.
7.5.6 Competitor proof
Section titled “7.5.6 Competitor proof”What it means: photos, case studies, credentials, testimonials, guarantees, and results claims.
How to do it: Record what proof each competitor shows: real job photos or stock photos, license numbers, insurance, years in business, guarantees, and case studies. Note which claims they back up and which they don’t.
Common mistake: copying their claims. Only claim what you can prove (see 11.3.1 Truthful Advertising Claims and 13.4.8 Proof Page).
7.5.7 Competitor weaknesses
Section titled “7.5.7 Competitor weaknesses”What it means: gaps in service, communication, scheduling, pricing, trust, or quality.
How to do it: Use your notes from 7.5.1 to 7.5.6. Write down the 3 to 5 weak spots that show up most. Then decide which one you can fix better than anyone, and build your reason to choose around it (see 7.1.11 Customer Reason to Choose).
Common mistake: picking a weakness you can’t actually fix. If you can’t answer the phone faster than they can, don’t promise it.
Example: a roofer studies 6 competitors. Most reviews praise quality, but complaints mention slow estimates and messy yards. Two competitors take days to respond. The roofer decides to promise a written estimate within 48 hours and a magnetic nail sweep on every job, and builds the website and profile around those two promises.
When to get help from a pro
Section titled “When to get help from a pro”You can do this yourself. A Small Business Development Center (SBDC) adviser or SCORE mentor can review your findings. If you plan to name competitors in ads or comparison pages, talk to an attorney first (see 11.3.9 Comparative Claims). Ask:
- Is the gap I found big enough to build a business on?
- Can I make this comparison claim in an ad without legal risk?
Bill’s note
Section titled “Bill’s note”[Bill: add a short story or opinion here. For example, what you see most often when you review a client’s local competitors, or the weak spot that opened the door for SiteSmarty.]
If you’d rather have this done for you, SiteSmarty reviews your local competitors’ Google Business Profiles as part of profile setup.
How I did this for SiteSmarty
Section titled “How I did this for SiteSmarty”- [Date I did this:]
- [What I actually did, step by step: the searches I ran, the competitors I picked, and what I recorded]
- [What it cost and how long it took:]
- [What surprised me or what I’d do differently:]
- [Screenshot or photo to add, with private info blurred: my competitor sheet and the Google Maps results]
- [Result so far:]
Questions people ask
Section titled “Questions people ask”How do I find my local competitors? Search your service plus your town on Google Maps and in regular search. The businesses that show up there are the ones customers see.
What should I look for in competitor reviews? Repeated praise and repeated complaints. Those show what customers expect and where competitors fall short.
Is it OK to call a competitor to test response time? A simple, honest question about availability is fine. Don’t book fake jobs or make up projects.
Can I leave a review on a competitor’s profile? No. Google’s policies ban posting content on a competitor’s listing to hurt it, and fake reviews break the FTC’s review rule.
How many competitors should I study? Usually 5 to 10. Include the top map results and any business customers named in your interviews.
Audit check
Section titled “Audit check”| Line | Question | Pass looks like | Fail looks like | Evidence to collect |
|---|---|---|---|---|
| 7.5.1 | Are competitor services and exclusions recorded? | 5 to 10 competitors with services and exclusions listed | Only one or two names, no exclusions | Competitor sheet |
| 7.5.2 | Are competitor prices and terms recorded? | Prices, minimums, deposits, plans, and terms with sources | Base prices only, no terms | Price columns with sources and dates |
| 7.5.3 | Are review patterns summarized? | Tally of repeated strengths and complaints | No review notes, or reviews posted on competitor profiles | Review tally |
| 7.5.4 | Was response speed tested honestly? | Response times logged from honest inquiries | No test, or fake jobs booked | Response log |
| 7.5.5 | Are competitor service areas noted? | Listed areas compared to where they show up and get reviews | Listed areas taken at face value | Service area notes |
| 7.5.6 | Is competitor proof recorded? | Notes on photos, credentials, guarantees, and backed claims | No proof review, or claims copied | Proof notes |
| 7.5.7 | Are weaknesses tied to a chosen difference? | 3 to 5 weaknesses and one the owner can fix better | Generic weaknesses, or a promise the owner can’t keep | Weakness list and reason to choose |
Where this fits
Do this first: 7.4.6 Price Expectations, 7.4.4 Market Trends and Geographic Demand
Do this next: 7.6.4 Customer Urgency, Value, and Expectations
Related pages: 7.1.11 Customer Reason to Choose, 7.3.4 Current Alternatives, 7.7 Define the Service Area, 14.1.8 Categories, 14.10.1 Google Review Policies, 16.2.2 Lead Response Time, 11.3.9 Comparative Claims, 13.4.8 Proof Page
Sources
- U.S. Small Business Administration, "Market research and competitive analysis" (checked October 16, 2026)
- Google Maps User Contributed Content Policy, "Prohibited and restricted content" (checked October 16, 2026)
- Federal Trade Commission, "The Consumer Reviews and Testimonials Rule: Questions and Answers" (checked October 16, 2026)
- Google Business Profile Help, "Tips to improve your local ranking on Google" (checked October 16, 2026)
This page explains general rules and Bill's own experience. It is not legal, tax, or insurance advice. Talk to a qualified professional about your situation.