In other to build an effective business plan, you need to (1) Analyzing the Market of Your Business Consider which segment of the local (and/or international) population will be seeking to use your products or services. This needs to be more than mere guesswork and involves doing decent research. Do your research first. Is there a viable market for the product or service you want to sell? This always involves analyzing secondary research (data already collected), but it often also involves getting primary research (data you collect through surveys or observation). To begin with, contacts such as friends and family might be a good place to start, and ask them to be honest with you! To determine your targeted market, write down the demographics of the people who will use your product or service. How old are they? What do they do for a living? Will mostly women use your service? Is your product or service attractive to a particular ethnic or economic group of people? Will only wealthy people be able to afford it? Does your ideal customer live in a certain type of neighborhood, such as a suburb with grass lawns, in order to use your lawn mower? Answering these questions about the demographics of your prime market will help you establish the clear characteristics of the people you need to reach. For example, if you are selling soap, you may believe that every dirty body needs your product, but you can’t start with the entire world as your initial market. Even if you’ve developed such a universally needed item as soap, you need to identify a smaller, more targeted customer group first, such as children under eight who might like bubblegum scented bubble bath. Or, if your soap only works with pumped well water without fluoride, you must acknowledge that your intended market has geographical limits as well; this may be ideal in some locations though, and you need to focus on whether that market is big enough to support your business, and look beyond the residents...
Posted on: Fri, 30 Aug 2013 11:15:20 +0000
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