Understanding the market and industry in which your company will do business is accomplished through an industry analysis.
An industry analysis conducted before you begin to write a business plan will help you to: An industry analysis is specific to the particular industry in which a business is currently operating or into which it plans to venture.
When how to write a business plan is at the top of the SBA list of the ten steps in how to start a business, it tells you something about how important the experts consider it to be.
Planning a business and writing a business plan is more than just having a location picked and a product or service to sell.
If you do not know these characteristics, hire a market research company or conduct your own online research.
Next, go into more detail and describe the "psychographic" characteristics of your target market, which are things like personality and lifestyle traits.For example, you may have a warehouse operation at your company's headquarters that distributes your product to retail locations via trucks.Or you may produce your product in several locations and sell it entirely online.The situational analysis section is one of the most important parts of a marketing plan.It outlines your company goals, strengths and weaknesses; describes your target customers; identifies your important partners and distributors; and provides an analysis of the competitive environment.The situation analysis is not an easy section to write and can take several months of research and planning.If you take the time to do it correctly, however, it can help differentiate your product or service in the marketplace.Briefly describe your strengths, weaknesses, product offering and market share.The next part of the situation analysis is the target market analysis.First, describe the demographic characteristics of your target customers.Demographic characteristics are things like age, education level, nationality, and occupation of your target customers.