Starting your journey as an entrepreneur begins with an idea. However, the idea is not enough. You also have to analyse the need for your product or service in the market. And if there is no need, you have to create one.
For that, you have to conduct a thorough market research. It will help you understand your target audience, competitors and also attract potential investors.
Not only this, the research and its outcome will also play a significant role in a well-structured business plan. Thus, it is essential that you know how to write an effective market analysis.
So, let’s get started!
- Use The Internet.
The market analysis section in every business plan provides comprehensive information about the industry in which you wish to establish your business. It relies primarily on raw data. Luckily, you can get most of the information from the internet.
You can take help from the U.S. Census bureau to get demographic information. According to your product and service, you can learn about the big brands and study them further to understand their tactics. Read the case studies and learn about the strengths and weaknesses of the competitors.
Likewise, you can make use of a market research tool to conduct online surveys to learn about your target customers. In fact, with the advancement of technology, you can now get real-time information which will help you a lot during the initial exploration phase. It will help you improve your product and service.
- View From The Eyes of Customers.
As we mentioned earlier, you need to learn whether there is a need for your product or service in the market or not. The best way to do so is by looking at your product or service from the customer’s point of view.
What is the problem that requires your solution? What competitor is doing to resolve the issues? How will your product or service help? How is it better or different from already existing ones?
Asking all these questions will help with a better understanding of your own product or service. Thus, explaining it becomes easier.
- Use Visual Aid and be Concise.
The market analysis section becomes more impressive if you include charts and illustrations. It goes without saying that charts and graphs are much easier to understand and help you pay attention to the main point. The more statistical information and metrics you’ll include, the better will be your plan.
In addition to this, keep in mind that your investors or clients already have some knowledge about the market. Therefore, you need to be concise. Include only the most critical data and results. There is no need to add every information in this section; instead, move the statistic or support document to the appendix.
Write A Summary: Add a summary at the beginning of the section, which includes significant outcomes and statistics. It will help the reader get an idea about what’s to come.
Your market analyses will give an idea to the investors or clients of how serious you are about your project and how well you know the industry. Therefore, you must keep the points mentioned above in your mind while writing the market analysis section.