If you’re looking for potential investment from people outside your immediate network, your market analysis should be in-depth demonstrating your grasp and knowledge of the industry in which you operate, the target market you are targeting, and the competitive landscape.
Here is a suggested outline for the market analysis section of your business plan:
Market Analysis
- Industry Overview
- Market size and growth potential (TAM – Total Addressable Market)
- Key trends and drivers
- Regulatory landscape
- Target Market
- Customer demographics and psychographics
- Customer needs and wants
- Customer buying behavior
- Competitive Landscape
- Key competitors and their strengths and weaknesses
- Competitive landscape analysis (e.g., Porter’s Five Forces Analysis)
- Market Opportunities and Threats
- Market opportunities and how your company will capitalize on them
- Market threats and how your company will mitigate them
In addition to the above, you may also want to include the following in your market analysis:
- Market segmentation
This involves dividing your target market into smaller groups based on shared characteristics. This can help you to better understand the needs and wants of each group and to develop targeted marketing strategies. - Market research
This involves gathering data about your target market and the competitive landscape. This data can be used to inform your marketing and business decisions. - Market forecasts
This involves forecasting the future size and growth potential of your target market. This information can be used to make informed decisions about your business strategy.
The length of your market analysis section will vary depending on the size and complexity of your business. Use as much space as necessary to fully detail your knowledge of the industry, its past, current and future trends. The process of analyzing the market might also provide additional insights you had not previously considered, too!
Here are some additional tips for writing a market analysis:
- Use reliable sources to support your data and claims.
- Be clear and concise in your writing.
- Avoid using jargon and technical terms.
- Tailor your market analysis to your target audience.
- Proofread your market analysis carefully before submitting it to potential investors or lenders.
By following these tips, you can write a market analysis that will help you to secure funding and grow your business.