Market analysis is a section of the business plan reserved for information on the target market of your business project, the purchasing habits of consumers in that market, and information on competitors. Based on market research and aimed at attracting the attention of investors, a well-done market analysis will highlight why your business will add value to a specific market and how it will generate enough income to remunerate the investments of the shareholders. This article will guide you in drafting a market analysis and will provide you with some tips to have a strong impact on potential investors.
Steps
Step 1. Describe your target market in general terms relevant to your business
In addition to geographic and demographic information, include details on the sector in the area of interest, trends and purchasing power
Step 2. Describe in which area of the local economy your business operates
Step 3. Identify your target consumers and their trends and include figures and estimates for the company's future growth
Step 4. Describe your market research, including past developments in your market segment, income and profits
Step 5. Describe purchasing behaviors and preferences, as well as areas for improvement in the economy segment of your business
Include information on how your business will offer superior products or services to those offered by your competitors
Step 6. Indicate how the structure of your business can respond to the needs that emerged from the market research
More importantly, distinguish your business from competitors and show, with statistics, how your business will grow
Step 7. Identify competitors and illustrate their strengths and weaknesses
Step 8. Provide an analysis of future market growth, including any changes in consumer habits
Step 9. Describe your company's role in the market and its advantages over competitors
Step 10. Describe where your business is in the future of the market
Step 11. Describe any weaknesses in your business and how they will be addressed
Step 12. Finish your analysis by providing a brief summary of market and competition trends, and how your business will address market needs and relate to competitors
Advice
- The form of your market analysis will vary based on the type of business plan you are writing. For a formal business plan, to be submitted to the attention of investors, write at least one paragraph for each of the points mentioned above, including diagrams, graphs and other relevant information, which certify the accuracy of the market research carried out.
- Your market research should be aimed primarily at identifying the types and trends of customers in your sector of interest. Through the market analysis we intend to demonstrate that there is a demand for your product and / or service and that you have the adequate means to satisfy that kind of demand; By providing detailed information on buying trends - supported by statistics - you will show potential investors that your business is bound to emerge in the target market.
