Market Analysis for Business Plan
Market analysis for a business plan involves exploring product/service suitability, identifying market size, growth rate, trends, profitability, product demand, buying trends, seasonality, and competition to prepare for a successful launch and steady growth.
Key Objectives
Objectives include demonstrating to investors that you understand the market and that it is large enough to sustain a business, focusing on demographics, segmentation, and target market.
Effective Market Analysis Tips
- Use the Internet for raw data such as demographics from the Census Bureau and competition research
- Put yourself in the customer’s shoes to understand problems that need solving and how you can offer better solutions
- Summarize market growth and projections
Steps for Market Assessment
- Determine purpose
- Industry outlook
- Target customers
- Competition comparison
- Additional data
- Findings analysis
Market Summary for Business Plan
A market summary should provide a brief overview of key market characteristics and trends, including market size, growth rate, major players, customer segments, buying patterns, and key trends. It consolidates research into insights for business decisions and strategies.