Competitor research is important because as a local business, you’ll want to be able to offer additional value in the market. Google Search is a great place to start. You can see how your competitors are positioning themselves within their ads.
Now, you must be thinking, how could I differentiate myself from all the other businesses who more or less provide a similar service? If you have no differentiator (and many startups don’t), invent one.
Known ways to differentiate yourself includes: By your Product, Service, Customer Relationship, Image/Reputation or your Price.