This section of your business plan will need to present convincing evidence that your business is likely to meet with success in the market place. This section will detail the market as you see it for your business, using numbers derived from the research you have done in developing your business idea.
Some questions to ask:
- What do you estimate the total market to be for your product or service in your country? In foreign countries?
- If your business can be broken down into different categories, list the total market for each of these categories.
- List the total market in numbers.
- Has the market continued to grow over the past 5 to 10 years? What support do you have for your conclusion?
- You can state the growth as a percentage or in total monetary volume. What do you estimate to be the potential for future growth for your business?
- Are there any demographic trends that support your business concept?
- Have there been any shifts in the economy make it likely that your business will prosper?
- What outside research have you done that supports your claims?
- What has your research into the type of business you are launching shown you?
- How are the types of businesses you are going into currently run?
- How do your prospective customers currently buy from the businesses that now exist to serve their needs?
- What kind of volume passes through these businesses?
- Who are your target customers? List the primary target markets.
- Within these primary market businesses, who is typically the decision maker about purchases from a company like yours?
- Is there anything about your business concept that will change the way these decision makers will have to do business with your company?
- How will you educate these people to become comfortable with your business concept? Will you use advertising? Seminars? Or some other technique?
- What are the secondary target markets for your business?
- Will they be receptive to your business idea?
- How will the CEO, CFO, controller, or other financial decision maker within a prospective customer view your business?
- Who are the decision makers in the consumer market who buy your type of product? How might they receive what you are offering them?
- What is the demand for your product or service?
- How much does your prospective market use of your product (in money) every year?
- Do you have any background research that backs up your claims?
- Do you have any tables or charts that support your claims about the potential market for your product?