How to Write a Business Plan: Market Analysis
The objective of the market analysis is to examine your external environment, which includes competition, environmental factors, economy, and other forces that may influence your business and how it competes in the marketplace.
This section of business plan help should contain numerous subsections. To start, make sure to cover the industry that your company will be competing in. For example, as a business plan writer, I compete in the business consulting industry. From this, I would make sure to discuss the business consulting industry as a whole. This would include research related to the growth of the industry and number of competitors, if possible. The next section to cover would be discussing your target market.
The target market is the perfect person or type of person that you wish to sell too. Identifying the target market, you will be able to better understand how you can customize your advertising and business model to best appeal to this market.
A final topic to cover in the section would be your competitive analysis. In your competitive analysis, identify your strengths and weaknesses, discuss your competitors’ strengths and weaknesses, identify any barriers to entry into the marketplace and how you will overcome these barriers, and finally examine your perspective market share gain after the first year of business. By covering all these topics, readers will not only understand how you will compete in the marketplace but this will also show them that you have done your research and that they should have confidence in your assessments.