How to write a market analysis business plan

Town B Although Town B looks more competitive 10 competitors vs.

How to write a market analysis business plan

The Competitive Analysis section of your business plan is devoted to analyzing your competition--both your current competition and potential competitors who might enter your market.

Every business has competition. Understanding the strengths and weaknesses of your competition--or potential competition--is critical to making sure your business survives and grows. In fact, small businesses can be especially vulnerable to competition, especially when new companies enter a marketplace.

Competitive analysis can be incredibly complicated and time-consuming Here is a simple process you can follow to identify, analyze, and determine the strengths and weaknesses of your competition. Profile Current Competitors First develop a basic profile of each of your current competitors. For example, if you plan to open an office supply store you may have three competing stores in your market.

Online retailers will also provide competition, but thoroughly analyzing those companies will be less valuable unless you also decide you want to sell office supplies online. Only you can determine that. To make the process easier, stick to analyzing companies you will directly compete with.

If you plan to set up an accounting firm, you will compete with other accounting firms in your area. If you plan to open a clothing store, you will compete with other clothing retailers in your area. Again, if you run a clothing store you also compete with online retailers, but there is relatively little you can do about that type of competition other than to work hard to compete in other ways: Once you identify your main competitors, answer these questions about each one.

What are their strengths? Price, service, convenience, extensive inventory are all areas where you may be vulnerable. What are their weaknesses?

Weaknesses are opportunities you should plan to take advantage of. What are their basic objectives? Do they seek to gain market share? Do they attempt to capture premium clients? See your industry through their eyes.

how to write a market analysis business plan

What are they trying to achieve? What marketing strategies do they use? Look at their advertising, public relations, etc. How can you take market share away from their business? How will they respond when you enter the market? While these questions may seem like a lot of work to answer, in reality the process should be fairly easy.

To gather information, you can also: Check out their websites and marketing materials. Most of the information you need about products, services, prices, and company objectives should be readily available.

If that information is not available, you may have identified a weakness. Take a look around. Check out sales materials and promotional literature. Have friends stop in or call to ask for information.

Evaluate their marketing and advertising campaigns. How a company advertises creates a great opportunity to uncover the objectives and strategies of that business. Advertising should help you quickly determine how a company positions itself, who it markets to, and what strategies it employs to reach potential customers.

Search the Internet for news, public relations, and other mentions of your competition. Search blogs and Twitter feeds as well as review and recommendation sites. While most of the information you find will be anecdotal and based on the opinion of just a few people, you may at least get a sense of how some consumers perceive your competition.

Plus you may also get advance warning about expansion plans, new markets they intend to enter, or changes in management.A SWOT analysis is a great way to assess what your business does well, and where you’ll need to improve.

It can also help you identify ways you can exploit opportunities, and to identify and prepare for potential threats to your business success. There are seven major sections of a business plan, and each one is a complex document.

Read this selection from our business plan tutorial to fully understand these components. The market analysis section of your business plan comes after the products and services section and should provide a detailed overview of the industry you intend to sell your product or service in, including statistics to support your claims.

The Competitive Analysis section of your business plan is devoted to analyzing your competition--both your current competition and potential competitors who might enter your market.

A market analysis forces the entrepreneur to become familiar with all aspects of the market so that the target market can be defined and the company can be positioned in order to garner its share.

How to Write a Business Plan, Step by Step - NerdWallet Develop a marketing plan with our template What to include in your marketing plan Set clear objectives and find out how to reach them Get direction for all your marketing activities Small Business Victoria's Workshops can help you develop a marketing action plan or refine your existing marketing plan. Find a workshop near you.
How To Write A Business Plan In Nigeria & Africa: The Complete Guide Set your goals and track your progress.
What's next? The Competitive Analysis section of your business plan is devoted to analyzing your competition--both your current competition and potential competitors who might enter your market. Every business has competition.
Profile Current Competitors Your business description is an explanation of what your company does, the industry your business is operating in, and what differentiates your business from others. It should also contain a more detailed information about your company profile.

When writing a business plan, the focus of the Market Analysis section is a thorough examination of your target market: those people to whom you intend to sell your products or services..

Even if you intend on selling a product service only within your own community, you won't be selling that service to everyone who lives there.

Business Plan: Analyzing Your Industry