Unformatted text preview: have those numbers, it should be a
simple step to develop a corresponding chart, such as the pie chart shown on page 12.1. Filling Out the Text
After you ﬁnd out about your market for a business plan, you also want to communicate that
knowledge to the readers of your plan. Keep your explanations clear and concise. The depth of detail
in market analysis will depend a lot on the type of plan. You may not need to provide a complete
market study in a plan developed for internal use, when all of your team knows the market well.
Maybe you’ll just cite the type of customers you attract, and the part of town you serve. The market
analysis section in a business plan is the section that is most likely to require research for information
from outside your business, while most others require thinking and analysis of factors within your
This is a good point to add a word of caution about the level of detail required. Please remember that
planning is about making good decisions, applying focus and enforcing priorities. A useful business
plan doesn’t necessarily include a market analysis suitable for a Ph.D. candidate in market research.
Planning is not about testing your knowledge. If you are looking for investment, then you may have
to use this section to display your wisdom and understanding of your industry, but don’t overdo it.
If you are planning an internal plan and have no audience other than your own team, I recommend
enough market research to make sure you’re not missing key points.
The value of information is limited by its impact on decisions. If more market information is not going
to help you do something better, then don’t bother. Explain your Segmentation
Make sure to explain and deﬁne the different segments in your table, particularly since you refer to
them and they are the basis of your strategy. What distinguishes small business from large business, if
this is part of your segmentation? Do you classify them by sales, number of employees, or some other
factor? I’ve seen segmentations that deﬁne customers by the channels they buy in, as in the retail
customer compared to the wholesale or direct customer, also compared to the Internet downl...
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