A key part of any business plan is market analysis. This section needs to demonstrate both your expertise in your particular market and the attractiveness of the market from a financial standpoint. This article first looks at what we mean exactly by market analysis before looking at how to make a good one for your ana,ysis plan. A business plan and market analysis analysis is a quantitative and qualitative assessment of a market.
It looks into the size analyxis the market both in volume and in value, the various customer segments and pupillage cover letter patterns, the competition, and the economic environment in terms of barriers to entry and regulation.
How to do a market analysis?
The objectives of the market analysis section of a business plan are to show to investors that:. When assessing the size of the market, your approach will depend on the type of business you are selling anqlysis investors.
If your business plan is for a small shop or a restaurant business plan and market analysis you need to take a local approach and try to assess the market around your shop.
If you are writing a business plan for a restaurant chain then you need to assess the market a national level.
Depending on your market you might also want to slice it business plan and market analysis different segments. This is especially relevant if maarket or your competitors focus only on certain segments. There are two factors you need to look at when assessing the size of a market: the number of potential customers and the value of the market.
It is very important business plan and market analysis look at both numbers separately, let's take an example to understand why. Imagine that you have the opportunity to open a shop either in Town A or in Town B:. Although Town B looks more competitive 10 competitors vs.
What Goes Into A Business Plan Market Analysis?
The definition of a potential customer will business plan and market analysis on your type of business. For example, if you are opening a small shop selling office furniture then your market buwiness be all the companies within your delivery range. As in the example above it is likely that most companies would have only one person in charge of purchasing furniture hence you wouldn't take the size of these businesses in consideration when assessing the number of potential customers.
You would however factor it when assessing the value of the market.]