Starting a new business or a new segment includes a marketing analysis.
By conducting a market analysis, we will be able to gather valuable data that will help you get to know your customers, determine appropriate pricing, and figure out your competitors’ vulnerabilities. Market analysis and your business plan. It’s smart to write a business plan, especially if you are beginning a new business. Even if you’re a sole proprietor or don’t intend to borrow any money to get your business off the ground, it’s important to have a clear plan in place. The market analysis isn’t just one part of a successful business plan—it’s one of the best reasons to write one. If you need to raise money from banks or investors to jump on board, a market analysis is required, as savvy lenders or investors will need to know that the business you’re pitching has viable market appeal. Either way, a solid business plan complete with market analysis will be invaluable. We will identify your potential customers and attract investors, and it will help you to be clear about what you want to do with your business, both now and in the future. The time we spend doing the research and putting it all together will come back to you many times over in dollars earned and heartbreaks avoided: you’ll look like a professional, and you’ll outshine the competitors that didn’t write one. A market analysis can be a measuring stick you use over time to see how far you’ve come, and it allows you to make projections based on data rather than guesswork. What to include in your market analysis? Our market analysis will include an overview of your industry, a look at your target market, an analysis of your competition, your own projections for your business, and any regulations you’ll need to comply with.
- Industry description and outlook
- Target market
- User persona and characteristics: we will have to include demographics such as age, income, and location here. We will also need to dial into your customers’ psychographics as well. We should know what their interests and buying habits are, as well as be able to explain why you’re in the best position to meet their needs.
- Market size: This is where you want to get real, both with the potential readers of your business plan and with yourself. We will do research and find out who and where your competitors are, and how much your customers spend annually on your product or service. How big is the potential market for your business?
- Competitive analysis
- Market: How big is the market for goods and services similar to what you plan on offering? What’s the growth rate? Include the general outlook and trends for this market. Who are your main competitors? Are there any secondary competitors who could impact your business?
- Competitor strengths and weaknesses: What is your competition good at? Where do they fall behind? Get imaginative to spot opportunities to excel where others are falling short.
- The importance of your target market to competitors: Ideally, you’re going after customers whose needs aren’t being met by your competitors.
- Barriers to entry: What are the potential pitfalls of entering your particular market? What’s the cost of entry—is it prohibitively high, or can anyone enter your market? This is where you examine your weaknesses. Be honest, with investors and yourself. Being unrealistic is not going to make you look good.
- Window of opportunity: Does your entry into the market rely on time-sensitive technology? Do you need to get in early to take advantage of an emerging market?