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Create Your Business Plan: Market Analysis

From the Small Business Administration

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. 

WHAT TO INCLUDE IN YOUR MARKET ANALYSIS…
INDUSTRY DESCRIPTION AND OUTLOOK

Describe your industry, including its current size and historic growth rate as well as other trends and characteristics (e.g., life cycle stage, projected growth rate). Include the major customer groups within your industry.

INFORMATION ABOUT YOUR TARGET MARKET

Narrow your target market to a manageable size. Many businesses make the mistake of trying to appeal to too many target markets. Research and include the following information about your market: 

PRICING AND GROSS MARGIN TARGETS

Define your pricing structure, gross margin levels, and any discount that you plan to use. When you include information about any of the market tests or research studies you have completed, be sure to focus only on the results of these tests. Any other details should be included in the appendix.

COMPETITIVE ANALYSIS

Your competitive analysis should identify your competition by product line or service and market segment. Assess the following characteristics of the competitive landscape:

REGULATORY RESTRICTIONS

Include any customer or governmental regulatory requirements affecting your business, and how you’ll comply. Also, cite any operational or cost impact the compliance process will have on your business.

Once you’ve completed this section, you can move on to the Organization & Management section of your business plan.