The market need in a business plan is a section that explains to investors, in essence, why your business exists. The Small Business Administration is especially sensitive to this explanation and if you're planning to present a business plan for a bank loan you should make sure that you're able to make a case for why the market needs what you have to offer. The market need can be described in many different ways. If you're opening a new pizza parlor and there's none other in town, your case should be an easy one to make. But if you run a competing grocery store on a crowded block of retail options, then what differentiates you from the one down the street? Think through these questions as you plan:
• What is your value proposition?
• How do you differ from competitors in the same space?
• What is your message to consumers (brand/marketing)?
• How can you be responsive to buyer needs as they change?
• Who are you targeting?
The market need in a business plan is far from the only important piece, however. The market analysis needs more than just a needs assessment – you have to show what your target customer base looks like, what the trends have been in your industry, the projected growth or shrinking of aggregate revenues in the space over 3-5 years, and so forth. The competitive comparison should provide details on the competitors most like you, and the data you gather should help inform a pro forma financial model that puts your projected sales and expenses into a cash flow and P&L. MasterPlans has been writing custom business plans since way back in 2002. Our team has more than 11,000 custom documents to our credit and can help you finish up your plan today! (877) 453-2011.
