Content

• Steps
• Tips
• Warnings
• What do you need

Market analysis is an important section of a business plan, containing information about the intended trading market, customer preferences and information about competitors. Market analysis is based on thorough market research and is intended to interest investors. A high-quality analytical report will confirm why your company will become a significant addition to the market and will be profitable. You will be able to write a quality market analysis with the following steps, as well as tips on how to impress investors.

Steps

1. 1 Write a general description of the market, indicating the factors associated with your business.
   • In addition to geographic and demographic information, include information on industry development in the region, purchasing trends, and purchasing power.
2. 2 Write in what area of ​​the economy the achievements of your business are directed.
3. 3 Indicate what type of buyers you are looking for by adding information on general trends in this segment and expected growth in the future.
4. 4 Write down what market research you have done. Add information on how your business has achieved in this segment, including average sales and profitability.
5. 5 Describe the tendencies and preferences of buyers, as well as the general directions of development in the area of ​​the economy to which your business belongs.
   • Include information on how your company will be able to provide goods or services that differ in quality from those of competitors.
6. 6 Indicate how the structure of your business can meet the needs that have been identified in the course of market research.
   • The main thing is to determine the difference between your business and competitors and prove that your business will grow, confirming this with statistical data.
7. 7 Identify the main competitors and describe their strengths and weaknesses.
8. 8 Include a forecast of market developments, including an analysis of estimated (calculated) changes in shopper behavior.
9. 9 Describe the role of your business in this market, indicating its advantages in comparison with competitors.
10. 10 Describe the place that your business intends to occupy in the future market.
11. 11 Describe the most vulnerable aspects of your business, indicating how you intend to respond to them.
12. 12 In the last part of the analysis, once again briefly describe the competition, general trends, and how your business intends to meet market demand in a competitive way.

Tips

• The format of your market analysis may differ depending on what type of business plan you are preparing. Formal analysis for investors requires at least one paragraph of information on each of the points described above, including tables, charts and other relevant information that will demonstrate how deeply you have researched the market.
• The main purpose of market analysis is to identify types of buyers and demand trends. When preparing a market analysis, you are trying to prove that there is a need for your products, and you have the opportunity to satisfy it. Investors will believe in the possibility of your success in the market when they see detailed information on purchasing power trends based on statistical data.

Warnings

• Do not manipulate data to cover up problem areas. Investors will notice distortions, and at best, it will be interpreted as an oversight. It is also best not to hide information so as not to give the impression that you have not done enough research. It is more effective to point out problem areas directly by describing how you intend to address these issues.

What do you need

• Business plan
• Market research