The market analysis portion of your business plan should communicate your profound knowledge of your particular market, and provide an explanation of why that market is enticing from a financial perspective.A market analysis consists of the combination of quantitative and qualitative assessments of a given market.This article will address another critical component of any business plan — the market analysis.
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.
Contrastly, if your business plan is proposing a nationwide chain of coffee shops, then you need to assess your market at a national scale.
While determining market size, you must look at both volume and value.
Use graphs and/or charts to explain your knowledge and conclusions.
Showing a solid understanding of your service/industry is essential.
The purpose of the market analysis section of a business plan is to prove to stakeholders such as potential investors that you know your market thoroughly, and that there is viable opportunity for a sustainable business venture.
The first step in performing a market analysis is to assess the size of the market.
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.