Writing a Business Plan: Market Analysis
When you are writing a business plan for a new business you are starting or trying to get extra funding from investors or a bank for your existing business, having to write the market analysis section can be intimidating for many business owners. The market analysis is a very vital part of any business plan, so when you write that section you need to make sure that you are doing your research in order to present it in a very positive light to ensure you can get the funding that you are requesting.
The marketing analysis section of your business plan gives the information about the commercial market where your business operates. It will also give information about your competitors and the purchasing habits of customers in the market that your business is found. The market analysis is not that hard to write if you include the points listed in this article.
The form your market analysis will take will vary. The form used will depend on the type of business plan that is being written and the type of business you are either starting or looking for extra funds for. You do need to make sure that you include any pertinent information such as graphs and charts. Make sure that you are primarily directing your market research at identifying the trends and types of customers in the market your business is in. Make sure that you prove there is a demand for whatever product or service your business is offering and that you will have the means to meet the demand.
With these steps, you do not need to write pages of information because a well-detailed paragraph will be sufficient for your business plan writting. One important step is to make sure that you describe the market that is relevant to your business in general terms so everyone can understand what you are describing. You should include in this paragraph demographic and geographic information that includes details about your spending power, your purchasing trends, and any industry in the area that offers the services and/or products that your business offers.
You should also state the area of your local economy in which your business contributes too. In the market analysis, you need to make sure that you are identifying the type of customer that your business is going to target and ensure that you are including any predictions and figures for growth in the future. Your market analysis should include information on how your business will improve the goods or services that other competitors offer.
Use statistics to show how your business will grow and how your business is different from other competitors in the area. You should also be able to identify your competitors and can explain any of your competitor’s weaknesses and strengths. When including this in your market analysis, you want to also describe your business’s role in the current market and how your business has an advantage over their competitors.
In order to survive in this competing business world, business plan writting is the best measure an entrepreneur with a small business can ever do. Writing a business plan can be intimidating. However, it is a necessary step towards earning a business loan for the launch or expansion of a professional practice or small to mid-size business.
If you would like to learn more about how Taylor Mason can help you with your business planning process, please contact us.