Do you plan to introduce new products or line extensions in the next few years? How do businesses make money in your industry? You noticed a trend or an opportunity that you could exploit to earn a profit. Having a compelling answer to this question is crucial to your sales pitch.
Consider any technologies — existing or emerging — and how they will influence your business specifically and the industry in general.
For example if you are opening a small shop selling office furniture then your market will be all the companies within your delivery range. Write a brief paragraph about factors that might negatively impact your business and what you foresee in the short-term and long-term future.
Competition The aim of this section is to give a fair view of who you are competing against. Include information from your Competitive Analysis and Unique Selling Proposition as well as data for direct and indirect competition.
And while people need food year round and in all economic climates, they do tend to buy more near major holidays like Thanksgiving and Christmas.
Which aspects of your business are most sensitive to changes in technology? Let's keep our office furniture example and try to estimate the value of the 'desk' segment. Potential lenders and investors will expect that you have, too. Are they organized enough to exercise their purchase power, or is there so much competition that they have their pick resulting in pricing wars amongst providers?
Develop your marketing plan Developing your marketing plan entails answering the following questions: One of the drivers for coffee is consistency.
This section should not be longer than eight lines. Will you stock items from further away?
How you will overcome the threat of substitute goods. The first thing to do is to see if the figure is publicly available as either published by a consultancy firm or by a state body.
Market value Estimating the market value is often more difficult than assessing the number of potential customers.
What about changes to the federal farm bill or changes in laws about selling raw milk products? How likely is it that another product or service could decrease demand or displace you and potentially the entire industry all together?
You can get lots of helpful information about your market from government sources, trade associations, financial services firms, online data providers, and free resources on the web.
The factors that are hurting and helping other players in the industry will also impact your business. What backup systems exist in case of a power failure? Will you need to hire drivers to go to their farms?
This section of your business plan reveals the chances of your business to achieve success with its offers. Provide a forecast for your industry. One way to carry the analysis is to benchmark your competitor against each of the key drivers of demand for your market price, quality, add-on services, etc.
Now it is time to focus on the more qualitative side of the market analysis by looking at what drives the demand. For example if you are opening a small shop selling office furniture then your market will be all the companies within your delivery range.
If you are planning to start a new restaurant in an area, your direct competitors are other restaurants within that locality, while your indirect competitors are those that are slightly remote but still around. What will you do in the event of a product recall?
From a tactical point of view, this section is also where you need to place your competitive edge without mentioning it explicitly.In this edited excerpt, the authors outline what type of details you should include in the industry section of your business plan.
It isn’t enough to just work hard. A key part of any business plan is the market analysis. This section needs to demonstrate both your expertise in your particular market and the attractiveness of the market from a financial standpoint.
An Industry Analysis is the “analysis of conditions in an industry at a particular time, including the behavior of and relations between competitors, suppliers, and customers. Understanding the different factors at work (market, political, economic) within a given industry is an important component of effective strategic planning for any company.
An Industry Analysis is the “analysis of conditions in an industry at a particular time, including the behavior of and relations between competitors, suppliers, and customers.
Understanding the different factors at work (market, political, economic) within a given industry is an important component of effective strategic planning for any company.
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.
How to Write an Industry Analysis by Sabah Karimi - Updated September 26, An industry analysis is a component of the business plan that provides statistics about the market potential of your business, product and services.Download