What should be included in the market analysis section of a business plan?

Answer 1

The market analysis section of your business plan should include detailed information that supports the notion that you really do have a market to sell to. You need to present solid facts, numbers and statistics from reputable sources. You should identify your potential customers or target market, including Demographics if you are selling to consumers (i.e. age, gender, income, local, regional or national) or key attributes if selling to businesses (i.e. number of establishments, revenues, location, etc.). Describe the size of the market and historical and potential growth. It is also important to discuss what motivates your target market to buy. When researching your customers, the internet is a great place to start. The World Wide Web yields thousands of articles and research reports on every imaginable topic, industry and consumer group. Government agencies also provide detailed information on the population and economy. For instance, the U.S Census Bureau publishes all sorts of information on the general public and business environment. Much of this data is derived from their Economic Census, which profiles the U.S. economy every 5 years and the Decennial Census, which is taken every 10 years to collect information about the people and housing of the United States. Besides the Internet, your local library, the yellow pages and even competitors will have information to help you define your target market and evaluate certain trends.