If you don't fully understand what's happening in your competitive marketplace, it's difficult to make good strategic decisions for your business. Or, if you are simply getting your butt kicked by the competition, it may be time to find out why and what you can do about it.

Accurate competitive intelligence can be an invaluable asset. Here are some things you should know about competitive intelligence:

1. It can make or break up-and-coming companies. Many successful entrepreneurs make an ongoing commitment to business research about their market and their competitors.
2. Business intelligence can provide you with early warnings of both threats and opportunities — and of ways to improve your bottom line.
3. It has both short- and long-term uses. You can use competitive intelligence for immediate decisions such as how to price a product or place an ad, or you can use the same information to help with long-term market positioning.

Action Steps
The best contacts and resources to help you get it done

Leverage the power of the Web for business intelligence

As the Web continues to mature, great business research is becoming more accessible than ever.

I recommend: Hoovers.com offers a wide range of detailed information that let’s you do a fairly detailed business background check. Some are free; most you pay for. Business.com is a free, business-specific search engine designed to help you find the companies, products, services you need to make smart decisions.

Access public records information for a business background check

Public records can be a great place to do business research on companies, people and assets, and to understand the critical relationships among them.

I recommend: On KnowX.com, you can run business background checks, verify property values and more using public records and other data resources. SearchSystems.net is a directory of public records on the Internet, covering billions of records useful for competitive intelligence, including business listings and corporate filings.

Engage professional services to conduct competitive intelligence

D&B offers excellent business intelligence services.

I recommend: Check offerings at D&B Small Business Solutions. You can find business research on new customers, old customers, your competition, and new markets. The best info isn't cheap, but it's worth the cost. Consulting firm Fuld & Company caters mainly to big companies, but the Intelligence Index & Competitive Intelligence Tools section of their Web site is valuable for entrepreneurs seeking insight into what competitive intelligence is all about. You'll find free business research reports, white papers, competitive intelligence terms and an intelligence toolbar. Check Business.com’s directory for providers of competitive intelligence and business background check services.

Consult the experts on business intelligence

Every year, more and more people make a career out of the creation and management of business intelligence.

I recommend: Non-profit membership groups for business intelligence experts maintain Web sites with information accessible to anyone. The Society of Competitive Intelligence Professionals' site has a resources section a directory of business intelligence product and service vendors.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Competitive intelligence means different things to different parts of your business. A product development person seeks heads-up on a competitor's R&D, while a salesperson wants insight on how best to bid on a new project, a business development executive wants to run a business background check on a potential partner. As a business owner, you might consider it a long-term view of your marketplace and rivals.
• •  Not all competitive intelligence is actionable, but even the best information is useless if not disseminated to everyone involved with your business who needs it.