All parts of your business plan are important to your emerging business. One significant part of the plan is understanding your market analysis. Every business needs to be well-versed in their market and realize the potential financial success it can have in that market. Overall, the market analysis should demonstrate your knowledge of the market. Your business law attorney can help you better understand your market and the role your company will play in it.
Definition of Market Analysis
Market analysis is a comprehensive assessment, both qualitative and quantitative, of the market. It examines the entire scope of the market, which includes, the size, value, customers, competition, purchasing trends, and the economic climate.
What to include in Your Market Analysis
- Outlook and Description of Industry: You should accurately and thoroughly present statistics that explain the industry, which should include size, trends, growth, and outlook.
- Target Market: A target market should reveal the type of customers or clients you aim to target. The target market will depend on the type of business or industry of your company. The target market should include key demographics of your customers, which include age, gender, lifestyles, and income levels. You should mention the size of the target market, their buying habits and the motives behind their purchasing decisions. Finally, you should reveal your approaches to reaching the customers in your target market.
- Market Need: Your market need should be well-researched and adequately explain why your company is needed. This section should reveal your contributions to the market. You should show your edge over other companies already in the market. The market need is important because it can draw potential investors to your business venture.
- Competition: Identify your competitors in the market and know their strengths and weaknesses. Demonstrate how you will handle the strengths and weakness of your competition that will give you a competitive edge in the market. Also, address barriers that will prevent you from entering the market.
How to Find Data for Your Market Analysis
There are several tools you can use to find the data needed to include in your market analysis, which may include the internet, the U.S. Census Bureau, surveys, or focus groups. Your business law attorney can help you gather and organize the information needed to create an effective market analysis report.
Developing a Market Analysis for Your Business Plan
There are many factors to consider when developing a market analysis for your business plan. You should know your target market and how competitively your business can perform in the market. All data and information used in the market analysis should highlight how your business products and services can make an impact in your market and industry.
You need to reveal how your company is uniquely positioned to influence the market in numerous ways. This should be explained using number-driven statistics and metrics with charts and graphs to highlight your points. Your business law attorney will be an asset in helping you create this important section of your business plan.