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Here are two scenarios, with one of them leading to schools closing in the Madison, Wis., area. Which one is which?

• Dec. 9: Heavy snowstorm all day with a predicted 3-5″ of accumulation; road conditions are treacherous during the morning commute, with numerous slide-offs.
• Dec. 15 Snowstorm the night before with accumulation of 4-5″; main roads are cleared before the morning commute.

You’ve spent a lot of time on tasks such as writing your business plan, getting city approvals, remodeling your space, setting up suppliers and/or hiring staff. You open your restaurant, store, salon, gym or other business, and on day one, you have no customers. Why? 

It’s because you didn’t do any marketing prior to opening. This happens all the time, as business owners mistakenly think–to paraphrase “Field of Dreams”–if we build it, they will come.

Porter’s Five Forces model can help you understand the competition you face, especially as you enter a new market. Three of the forces–direct competition, new entrants to the market and indirect competition–should be obvious. The other two–suppliers and buyers (customers)–are often not.