Market Situation
This is an important section and needs some thought. What market are you in and what brought you to this? What is the market opportunity? What is happening in the market that makes you think your business will grow? Who are your customers, what sector are they in, what is their geographic/demographic spread? Who are your major customers, how long have they been with you and how dependent are you on them? How will this market mix change and why? What is your advertising and marketing strategy? How do prospects tend to find out about you? Where are you going to advertise and what is the budget for this? What other processes are being used to attract and retain customers? If a start-up or early stage business, what customers are already in place, and what is the estimated sales value? How is the sales and marketing function organised? Who are the people involved and what are their roles? Is there any after sales service or warranty liability?
Market Research Please detail any market testing you have done and how you come to the selling price quoted earlier. Writing a business plan, when you have not done any research on your business and its market is foolish. Angels will want to see that you have looked into the competitors and the market and that you have a general feel for the macro economy. Talk to your local business Link, the IoD and Chamber of Commerce for help, talk to friends and family, research the net……do what you can to substantiate your claims and provide the Angels with a background in your sector.
Competition Describe your competitors. What advantage do you have over your competitors? What stops a competitor copying your idea? Expand on your answers to give a full and coherent overview of what other people are doing out there and how you are better.
Expansion Potential Explain how you will grow your sales. Will it be by taking share from competitors, providing a new service or growing an existing market?
Problems and possible solutions relevant to the market What are the problems that you have to overcome that relate to the market and competition?
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