This is the fourth part of my articles on writing a business plan. You can view the previous parts here Part 1 Part 2 Part 3.

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Recall that we said
The components of a good business plan includes

• executive summary
• mission statement
• SWOT analysis
• competitor analysis
• market analysis and plan
• operations plan
• management summary
• financial plan
• milestones Source

Market analysis and plan will be examined.
Source

Market analysis and plan

The market analysis section of the business plan should be composed of everything about the industry your business is based on.

The analysis should include information about the target market, the industry, how you intend to market your product/service, your competition and so on.

The market analysis is the foundation for a Marketing plan.

There are different dimensions to a market analysis and they include

Market size

The size of the market is determined by the present volume and the potentials in the market. The market volume depends on the number of consumers and their demand for that particular product/service. Information on the Market size can be gotten from the Trade association database, Government database, and from surveys.

Market trends

Market trends are the movement of the market in a particular period of time. It can be either upward or downward movement.

Market growth rate

This is a way of predicting the growth rate of a market. It uses historical data to predict the future.

Components that must be present in the market analysis are

• Detailed overview of the industry- statistics that define the industry, their growth rate, size etc
• The target market- This include the details about the consumers you are targetting. The demographics, social style, religion, age, gender etc
• Market test results- You include the results of the research you have conducted here
• Competitor analysis- This was discussed in the last post here.

In writing your market analysis, you can gather data from the internet, government, customers etc.

Ref 1|Ref 2