Resources for Young Entrepreneurs
Market analysis
Set out systematically the main results of your market research.
It is important not to blitz the reader with mounds of detailed information. Highlight only the key conclusions, with the evidence that leads you to that conclusion.
Your outline may take the form of a number of key points e.g., the characteristics of the customer and the current market trends that point to a viable business opportunity. How you lay out the evidence is up to you. Here are a few pointers to bear in mind.
Overview (Desk Research)
Define for the reader, as simply as possible, exactly what business you are in. What is the overall size of the market? Is demand rising or falling? What trends and influences is the market subject to?
Research (Field)
Outline exactly what research has been carried out, particularly any surveys, interviews or test marketing you have done yourself. Depending on space, you may want to lay some results out in graphic form, but normally this type of detail should appear as an appendix.
Customers
Target your customers as accurately as possible. This is often known as “segmenting” the market. Which slice are you after?
Some of the factors to bear in mind are:
- Industrial or consumer
- Age
- Income Group
- Local/UK/Foreign
The Product/Service
What makes your customer tick/ People rarely buy things just for the sake of owning them; products and services allow them to do the things they want to do. What are you doing for your customer? One way to look at this is to describe the features of your product/service as “benefits” to the customer.
For a certain type of car this would run as follows:
Feature: 5 speed gear box, Benefit: Fuel economy when cruising
Feature: Hatchback, Benefit: Easy access to luggage space
Feature: Fold down back seat, Benefit: Flexible luggage space
Feature: Heated window, Benefit: Easy to keep window clear
Other factors might include social status, personal interest or taste. Convenience is often a key word here -how can you make people’s lives a little easier for them by providing the right benefits? Find as many ways as you can to show how the customer’s mind works.
Competition
Who else is out there in the market? How do they operate? A unique idea may mean that you have a few competitors, but it will be hard to predict if there is going to be sufficient demand to support a viable business. Lots of competitors shows that there is a market but can you compete? How do you differ from your competitors? Where are the gaps in the market, and how could you go about filling them?
Conclusions
Summarise what opportunities and treats the market is presenting at this time and what your research has shown you about how you should structure your business in order to meet customer needs and make a profit.
