Course: SLF 130 Marketing Practices for the Small Business

Unit 7 Reading

SubTabs

- Unit 7
- Table of Contents (Selected)
- Unit 7 Glossary (Selected)

Creating Your Business Plan Page 3

Creating a Business Plan: Market Analysis

The market analysis section of your business plan should illustrate your industry and market knowledge as well as any of your research findings and conclusions. This section is usually presented after the company description. Sections may include all or most of the following:

Market Analysis Sections | Details to Include
Industry Description and Outlook
- industry size
- historical and projected growth rate
- trends
- major customer groups
Target Market
- size of your target market
- market test or research results
- needs of potential customers
- customer demographics
- seasonal or cyclical considerations
- psychographic or lifestyle descriptions
Market Share & Pricing
- annual purchases of your target market
- forecasted market growth
- your estimated market share percentage
- your pricing structures
Competitive Analysis
- your competition by product line or service
- competition's market share
- competition's strengths and weaknesses
- indirect or secondary competitors
- barriers that can affect your entry in the market
Regulatory Restrictions
- customer or governmental regulatory requirements
- plan for compliance
- cost impact of compliance
Tips

Narrow your target market to a manageable size. Many businesses make the mistake of trying to appeal to too many target markets.

See more suggestions in Understanding Your Market.

Include details of market studies in the appendix of your plan.