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| Market Analysis | Market Analysis section of the business plan is a detailed investigation of your target market, those people that you intend to sell your products or services to.
First of all you need to define your target market. In other words, you require knowledge about how many people are might be interested in buying your products and what they are like. Then you can make some projections about how much of your products or service might be sold to them, and what affect trends and policies might have.
Start your work at writing the Market Analysis section of the business plan with the Target Market investigation. Define the size of your target market. Everything matters: people’s age and gender, place of living, family structure (number of children, extended family, etc.), income of the family, their type of lifestyle, how they like to spend their spare time, what motivates them matters. It is the general information and you need some specific, which are directly related to your products or services. If you plan selling books, you need to know what kinds of books your potential customers have bought in the past, and how often.
Projections about the Target Market
Making projections about the Target Market you can use the following points:
1. Proportion of your target market that has used a product similar to yours before.
2. Possible sales volume of your product or service in the target market.
3. Demographic shifts influence on your target market.
4. Economic events affect the target market.
5. Large socioeconomic trends and government policies affect.
Now you have enough information to write the whole market analysis section of the business plan. Head each paragraph with appropriate heading. If your business directs its efforts to several target markets, you can number each.
Properly cite your sources of information as the readers of your business plan will need to know the sources of the statistics.
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