There are many different elements to a business plan: the executive summary, business overview, sales and marketing plans, financial projections and market research and analysis. As you work to create your business and craft a strong, effective business plan that can land you business partners, funding and employees, you may be wondering what you should be researching and analyzing in the market research & analysis section. Here are some tips on what goes in that section, the first in our new What to Include blog series.
Writing a Market Research & Analysis Section
Target audience demographics and segmentation: Depending on your product or service and your business structure, your target audience will be different. No matter how you plan to operate, this section should include:
- the size of the customer base you plan to have
- who the potential customer may be
- the value of the possible customer segment
This will help your investors and lenders understand your industry like you do.
Target market: The target market is the type of customers. Be as specific as possible, even if you are going into a more general type of business that everyone can partake in (like a coffee shop).
Market need: What need will you fill? What problem are your future customers facing that you are solving? Detail the demand for your product or service and how your business will fill the gap. If you are going to have a lot of competition, describing what drives the market is important.
Competition: Who are your competitors? What are their strengths or weaknesses? This is a good place to explain what they aren’t doing well, what their weaknesses are and what they could be doing better (that you instead will do).
Barriers to entry and regulations: Focus on answering some questions your investors will have before they can even sk them.
- What barriers are there to entering the market – for you and for future competitors?
- What will make you successfully be able to navigate those barriers?
- What regulations does your industry face?
These barriers may be financial investments, technological changes or regulations. Explain what the regulations are and how you will stay compliant.
Get help from experienced business plan experts with conducting your market research so that your business plan is sure to impress your lenders and investors. Contact Bargain Business Plan for a free consultation to learn how we can help you with market research, business plans and pitch decks so you are prepared to launch your business!
Be sure to check out future What to Include blog posts!