Conducting a market analysis is an essential process for anyone looking to start a successful business.
The market analysis portion of your business plan should communicate your profound knowledge of your particular market, and provide an explanation of why that market is enticing from a financial perspective.
What is a Market Analysis?
How to Perform a Market Analysis
Step #1: Determine Market Size
Step #2: Conduct Market Segmentation
Step #3: Define Your Target Market
Step #4: Define The Market Need
Step #5: Outline Barriers to Entry
By following the steps outlined above, you’ll be able to put together a comprehensive market analysis for your business plan.
Doing so will give you the familiarity and knowledge necessary for deciding whether or not to move forward with launching your business plan.
To learn about another vital component of any business plan, an effective executive summary, be sure to read this recent article.