What is a market analysis?
market analysis is a comprehensive valuation of a market. It gazes into the size.
market analysis, the various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation.
How to do a market analysis?
The purpose of the market analysis section of a business plan are to show to investors that:
- you know your market
- it is large enough to build a maintainable business
for you to achieve the following plan is recommended:
Demographics and Segmentation
When evaluating the size of the market, your approach will depend on the type of business you are selling to investors. If you are into small scale business plan or a restaurant, then you need to a search and try to assess the market around or close to your shop. If you are writing a business plan for a restaurant chain, then you need to assess the market a home level.
Depending on your market you might also want to share it into various segments. This is specifically important if you or your opponents focus only on firm divisions.
Volume & Value
There are two factors you need to look at when assessing the size of a market: the number of possible customers and the value of the market. It is very vital to look at both numbers discretely, let’s look at an example to understand why. for more information; kindly visit our contact page
Let’s say you are opportune to open a shop either in 1st town or in 2nd town:
| Table: 1ST Town vs. 2nd Town | ||
| Town | 1st | 2nd |
| Proposed Market value | £220m | £852m |
| Potential/permanent customers | 18 big companies | 200 small companies |
| Competition | 4 competitors | 9 competitors |
created by: peace Edet
