The four stages any entrepreneur goes through   

The four stages any entrepreneur goes through   

Running a business is not something easy to do and while some people manage to succeed although they do not have a lot of experience, others may fail even if they are More »

Steps to starting a small business

Steps to starting a small business

If you are interested in setting up your own business, then there are a few important steps to follow in the process. Because the business world is highly competitive, it is more More »

Keeping your social media fans engaged – how to attract new followers

Keeping your social media fans engaged – how to attract new followers

Considering that social media marketing is more popular than ever and can have a very important influence on the success of a company, managers will need to always be careful with their More »

 

Market analysis is still important

An essential part of any business plan is studying the attractiveness of a market within a specific industry. Whether you are a small or a large corporation, you should make efforts to understand the factors that can possibly impact your business or your clients. The truth is that financial mediums change at a rapid pace, reason why you need to determine if the market is attractive from a financial point of view. If you were, for instance, to open a fast food restaurant in a remote country, you need to know how profitable it would be for your business to enter it. The point is that you need to take into consideration the number of consumers that will purchase them. The market analysis will give you a good idea about the industry of a ZIP code in terms of quantity and quality. These factors will give you a good idea on how to operate your business.

In-depth SWOT analysis

The core of market analysis is to evaluate the strengths, weaknesses, opportunities and threats of a business. This technique is commonly known as SWOT analysis and it is not unknown to companies belonging to the McDonalds franchise. Used in the financial context, SWOT is the most intelligent thing you can do. This analytical framework will help you divide a viable niche in the industry. You should only use SWOT during strategic planning, namely when you are trying to explore new opportunities or are looking for areas of change. So, how do you use SWOT analysis? You should be realistic about your strengths and weaknesses, not to mention that you should include key points and issues, such as lack of online presence or economic factors. Based on these factors, you will be able to make a sound selling strategy.

What should your market analysis contain?

Every inquiry should contain an overview of the economy. This is important in order to be able to understand the size of your market and the direction towards which it is heading. For instance, if there are more sellers than buyers, you do not have the certainty that your products and services will stand out. When trying to identify industries in your business development that you can take advantage of, it is essential to focus your attention on future trends. Your primary concern is not existing customers but those that you could reach some day. This way, you will also get a clear idea about how long the medium will last. So, before making an investment look at the growth rate. Equally important is to take into account success factors, including distribution channels and cost infrastructure, which are factors that will allow you to achieve success.

Write your market analysis

After you have found out everything you need to know in order to make a new business venture, it is time to start writing your business plan. You should always begin with a short summary of the groups of customers that you have chosen and explain your choice. Think about this paragraph as one that is intended for a finance application. In the body you will have to detail your segmentation, which is normal since it will be part of your marketing strategy. It is important not to forget the needs of these groups as well as the growths and trends. In order to be more convincing with your arguments, cite experts in the field.