The market analysis section of your business plan comes after the products and services section and should provide a detailed overview of the industry you intend to sell your product or service in, including statistics to support your claims.
In general, the market analysis section should include information about the industry, your target market, your competition and how you intend to make a place for your own product and service. Extensive data for this section should be added to the end of the business plan as appendices, with only the most important statistics included in the market analysis section itself.
Example of the Market Analysis Section of a Business Plan
For an example of a market analysis section, see JetFan Technology Limited.
What Does a Market Analysis Section in a Business Plan Include?
The market analysis section of your small business plan should include the following parts:
- Industry Description and Outlook: Detailed statistics that define the industry including size, growth rate, trends and outlook.
- Target Market: Who is your ideal client/customer? This data should include demographics on the group you are targeting including age, gender, income level and lifestyle preferences. This section should also include data on the size of the target market, the purchase potential and motivations of the audience, and how you intend to reach the market.
- Market Test Results: This is where you include the results of the market research you conducted as part of your initial investigation into the market. Details about your testing process and supporting statistics should be included in the appendix.
- Lead Time: Lead time is the amount of time it takes for an order to be fulfilled once a customer makes a purchase. This is where you provide information on the research you've completed on how long it will take to handle individual orders and large volume purchases, if applicable.
- Competitive Analysis: Who is your competition? What are the strengths and weaknesses of the competition? What are the potential roadblocks preventing you from entering the market?
Continuing reading for tips for writing an effective market analysis.
