The market
The market analysis is very vital part of the
feasibility plan. Is there a market for the concept? Can it be proven? If not,
it may be useless to continue to pursue the concept. The market for the
business concept may be so large and obvious that little needs to be done in
the feasibility plan other than proving its size. In your business plan much
additional market information is required. In the feasibility plan it is enough
to prove that a sufficiently large market exists for the concept and,
therefore, further investigation of this opportunity is necessary. The
feasibility plans should explain the way the product/service will be sold to
the customer and what kind of distribution channels will be used.
Market:
Formatting a Feasibility Plan with Subtitles
• Current Market Size (question 1)
• Growth Potential of the Market (question 2)
• Industry Trends (question 3)
• Customer Profile (question 4)
• Customer Benefits (question 5)
• Target Markets (question 6)
• Market Penetration (question 7)
Market
Questions:
1. Describe the current size of the industry
for the product/service. (Indicate the amount of dollars spent annually by
customers and/or units consumed.)
2. Describe the growth potential of the
industry for the product/service. (Is the growth stable or declining?)
3. Describe the industry trends that will
affect the product/service. (Look for new developments such as low-fat,
no-cholesterol food products, etc.)
4. Define the customer profile. (Consider
demographics such as age, sex, income, profession, and geographic location.)
5. Explain customer benefits from the
product/service. (What problems are you solving for your customers? List in
bullet form.)