Business Plan: Market Analysis
What is a market analysis?
The Market Analysis explains the industry you operate in, your target customers, key trends, and the competitive landscape. It summarizes the size and growth of your market, who your ideal buyers are, and how changes in demographics, technology, or regulations are shaping demand. By outlining what competitors offer and where they fall short, this section shows how your business is positioned to stand out and succeed.
Why is it important?
Use this portion of the plan to highlight whether you are entering an untapped niche or serving an existing market with clear room for new, differentiated providers. Present the research, data, and fieldwork you have done such as surveys, market reports, or competitor reviews to validate that customers already want, or will soon want, what you sell. This analysis not only backs up your hard work and “sweat equity” but also reassures lenders that demand is strong enough to support revenue, growth, and repayment of their investment.
Key market analysis considerations
Define the overall industry including key activities and major players. (historical, projections)
Define entry into market for your specific service area (consistently defined throughout the business plan)
Identify target market
o Outline how these customers find, evaluate, and choose solutions in the industry
Assess demand: evidence of ability for your business to access the market
o Evaluate market saturation: how many similar offerings exist and whether there are underserved gaps.
Outline your pricing strategy relative to competitors and perceived customer value.
Barriers, risks, and regulation
Utilize credible resources for market research
o Government data
o Peer reviewed data
o Commercial research platforms (IBISWorld, Statista, MarketResearch.com)
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