4 Steps to Design the Ideal Market Analysis for a Business Plan
Market analysis is one of the most important steps to creating your new business plan. Platte River Analytics will help you to create a perfect market analysis for your business plan.
“Competitor intelligence is a key step to any business plan. Creating a comprehensive market analysis on competitor intelligence allows you to find insight on your competitors and develop a competitive edge.”
Competitor intelligence refers to the act of collecting data and intel on both geographic and similar competitors. Collecting intelligence on a nearby competitors in proximity involves data like visitors, yearly sales totals, nearby traffic and sales potential. Collecting intelligence on similar competitors involves studying companies that create similar products, sell similar items or have a similar business model. Determine what factors contribute to the success of these competitors and apply those attributes to your own business plan.
Competitor intelligence is a key step to any business plan. Creating a comprehensive market analysis on competitor intelligence allows you to find insight on your competitors and develop a competitive edge. Competitor intelligence will not only be a key addition to your business plan, it will also be an integral part of your business solution going forward.
A good place to start for discovering competitor intelligence is the U.S. Census Bureau. The Census Bureau provides valuable data like business counts, economic indicators and and owner characteristics. Visit the Census Bureau's "Business and Economy" page to locate relevant economy data that is updated on a quarterly and yearly basis.
Market analysis is a key indicator on the growth and future of your potential market. A comprehensive market analysis will include details like demographics of potential customers, market potential, traffic counts and foot traffic. This analysis will also help you in the future by discovering what customers to target and what attracts them to your company.
Demographic data of potential customers includes variables such as age, race, income, education and household size.
Platte River Analytics has access to over 1500 demographic and economic variables. Save time and money by having Platte River Analytics design the market analysis section of your business plan. Email Platte River Analytics to learn more about how we can help.
Income data is a key indicator for the sustainability of your business. Income data measures the median household income of the surrounding area. For example, a designer furniture would appeal to households that earn a higher income. A discount store may be better suited for a lower income area.
Age is another indicator that can be essential to the future of your business. Regions with a median age of 65+ may be more likely to be interested in handmade goods or department stores. Areas like Florida, New Mexico and Arizona are more likely to have a higher percentage of population over the age of 65. Companies that specialize in technology like consumer electronics, gaming and outdoor recreation may look to target the 35 and under crowd. This demographic is likely to contain young professionals with disposal incomes. Comparing median household income and owner-occupied housing would be the first step to target this demographic.
The "Data and Statistics" page at usa.gov will give you a good start to compile key demographic factors and variables to add in your business plan.
A market trend is an analysis of how a certain market will perform over time. In this section you need to prove the market you are about to enter is stable and able to expand. Consider these things when creating a detailed market trend analysis:
Exposure and popularity of market - what demographic is your market the most popular with?
Ability for market to grow - show detailed statistics of how market has grown over previous years.
Market segmentation - understanding your market. ESRI is a leader in market segmentation.
Demand - is there a desire for your services or goods in the market?
Pricing - has the price of your product increased in the previous years? Show proof the pricing of your product is constantly increasing in the market.
The industry description section of your business plan is where you prove your expertise of the industry you are trying to enter. In this section you need to identify key factors like size and growth of industry, key companies and major technologies. While you may not be in direct competition with most of your industry peers, you still need to be able to identify them and describe their characteristics.
Databases like ReferenceUSA and Value Line can be crucial to identifying key industry descriptions and profiles. These databases will contain research on millions of businesses across North America and also investment data to research companies, industries and markets.
** PRO TIP: Many local libraries have free subscriptions to these databases to aid in market research and business development. **
Platte River Analytics aims to promote business development with the utilization of location analytics and spatial business intelligence. Platte River Analytics assists companies with finding optimal locations in retail site selection and helping to solve important business questions utilizing location data and intelligence.
Utilizing spatial intelligence, we assist small businesses with securing, storing and analyzing boundless amounts of data, establishing interactive maps and dashboards analysis, and extracting business insights.
If you are looking to convert your location intelligence into a competitive edge, send us a message today for more details and examples.