Bankers want information on what kind of competition there is out there before lending money to expand an existing business. Statistics compiled by the Business & Industry Institute in Washington, DC show that fully 30% of existing businesses wanting to expand miss the mark because they failed to first analyze competition. What your banker is looking for are the reasons you will succeed, and competitive analysis is one of the main tools for determining success. Here are some ways to gather the information without forecasting your moves.

SEARCH PRINTED INFORMATION
There are at least four sources of print information about your competitor that are almost at your fingertips.

1. Subscribe to the local papers where your competitor's business is headquartered. Don't neglect the throw-aways! Newspapers are a favorite place to brag, and your competitor's brag is your information source. Some papers permit you to explore their archive information, and some will furnish you with the information for a fee. Check it out!
2. Hire a clipping service to gather print information on your competitor's new products, new ideas, and other similar information. These tidbits are often buried in obscure corners of the paper, and a professional clipping service can dig them out.
3. Read the trade literature. Many firms float trial balloons on new products and services in business-to-business magazines and in industry and trade journals.
4. Collect and read your competitor's sales literature; it's usually available for the asking. Don't be sneaky about this, but also don't be in-your-face about collecting the information either!

ATTEND TRADE SHOWS
If your competitor exhibits anywhere, you need to be there! Approach your competitor's booth as a potential customer. Ask what they're doing now, and what plans they have for the future.

If you're not a member of the same trade association, join, the get involved in association activities. Many new ideas are introduced in trade show work committees; plus serving on a committee provides the important opportunity to mingle with your competitors in a one-on-one atmosphere.

PURCHASE SAMPLES
This sounds almost too simple, but the Japanese and other competitive nations have been using this technique for years. Purchasing from your competitor can give you intimate information on quality, how the product is manufactured, packaging, pricing, and dozens of other bits of information. Printed material accompanying the product will provide you with important knowledge to help you design your own sales pitch.

TALK TO SUPPLIERS AND DISTRIBUTORS
Suppliers to your industry (and your competitor in particular) can provide important information on the quantity and quality of materials going into your competitor's product. Distributors and bulk buyers of your products have a wealth of information on customer acceptance, problems, warranty information, and other general data; and they are eager to share this data with you. You can also learn what it is your distributor would like to see to satisfy their needs; remember, they're a customer also.

DISCOVER FINANCIAL INFORMATION
Start with a Dun & Bradstreet credit report for around $100. This report (available by calling 800-879-1362) will tell you a wealth of information such as sales volume, net worth, credit information, and other information. If the competitor is a public corporation, you can legally request a copy of their last annual report, and a current Schedule K.

SEARCH-OUT CUSTOMER SATISFACTION
To discover what negative things customers are saying about your competition, contact the Better Business Bureau in the hometown of your competitor. This is an excellent source of information on problems that have been reported. You might also check to see what they are saying about your firm at the same time!