You should include this only if there are other companies who will be in competition with yours. You want the reader to understand that other companies have generated profits in your marketplace because that shows that your activities will generate income, too. You also want to demonstrate that you will do even better than those competing firms. You have more expertise, better holdings, more vision, or something that will enable you to earn more money than the companies that are in competition with you. Here are questions to answer:
Which companies are your major competition?
What do they do, and what are their holdings?
Do they appeal to the same consumers as you are trying to attract?
How long have they been in business?
What have their profits been?
Are they becoming more profitable or less, and why?
How do they differ from you in properties owned, sales or rental volume, number of employees, additional benefits (they improve larger properties than you do, for example, or are in the luxury segment), and other key factors.
How will you compete with them? (Perhaps you will offer more luxurious properties, for example, or a more convenient commuting location for your tenants to enjoy. Perhaps you will charge lower rents than the competition.)
Have you learned critical lessons by watching your competition that will allow you to avoid costly mistakes or generate profits more predictably?
Include this section if the success of your enterprise depends largely on advertising or marketing to your target consumers. Answer these questions:
Who are your target consumers?
How will you reach them— through the Internet, radio ads, newspaper classified ads, or otherwise?
How cost-effective is the cost of that advertising? You can reach one million consumers with a radio ad that will cost you $1,000, for example.
What are your marketing priorities? To whom will you advertise first, for example?
Are there applicable market studies that support your belief that you can generate profits by marketing to the group(s) you are targeting?
What geographic areas will you cover as you advertise or market your properties?
Do you have salespeople or rental agents? If not, do you intend to hire them?
Will you retain real estate agencies or other parties as part of your efforts to sell or rent your properties? If so, what will those activities cost?
What will you charge for your properties in rents or sales prices, and how do those figures compare to what the competition is asking?
Will inflation allow you to generate more profits from rentals or sales in the years ahead? When can you begin to generate those increased profits?