Having a good business plan is the most important step in starting and/or running a business. If you are seeking funding, it’s a required document. Because a business plan is a written, organized way to view all the essential elements of a business, it also serves as a guide to help business owners/managers stay on track and/or determine what changes might be needed. It will be the most helpful tool any entrepreneur can have.
The Market Analysis section of a business plan shows the entrepreneur’s knowledge and expertise about the particular business being started (or currently running.) This segment should have a full description of the business’s history, growth, and trends. It must include a complete description of the needs, size, and unique characteristics of the potential customers, clients, or patients. It should also assess whether those needs are currently being met. If not, it must explain how your business will meet them, including a projected estimated market share to be acquired. In addition, this portion should reflect the geographic location of your target market, pricing and gross margin levels, and possible trends and/or changes that may impact all the above.
It will be helpful to seek out a few of the most successful businesses in your industry or service. Identify their specific target market, size of coverage, and the way they go about purchasing or manufacturing their products or services. Pay close attention to their pricing methods. Gather as much information as possible about the geographical service area’s population and needs. This will enable you to see clearly if there are any vacant niches or poorly serviced quarters you may be able to pick up. Once you’ve ascertained your competitions strengths and weaknesses, you have launched a unique objective for your own opportunities.
In the Market Analysis portion of the business plan, it’s very helpful to list additional information about your product and/or service with regard to your target market. For instance, one item might be the various fields of possible growth within your product or service. Here you will evaluate a new product line or other forms of expansion. Along with that you would include the reasons for your projections and the way you would successfully address that need. Another might be the way your current plan can be changed to meet any modifications in the market demographics, physical location(s) of the business, or alterations in economic conditions.
There’s a huge amount of research that must be completed and included in the Market Analysis section of a good business plan. It’s important to provide the summaries and/or highlights of any marketing studies and/or research data you have gleaned regarding your business. Use graphs and/or charts to explain your knowledge and conclusions. Showing a solid understanding of your service/industry is essential. Including it in the Market Analysis section of your business plan is critical.