The best industry analysis business plan will typically have a clear target market and make projections about where that market is going. In essence, it is a document that helps a company to understand to whom it is selling and in what kind of a climate. It typically includes information about the current status of various elements, in addition to forecasts for future performance.
Some of the most important elements of an industry analysis business plan are details about the people who make up the target market. This can include basic data such as average age, income, gender, and geographic location. It will also often go into deeper detail about the lives of target market customers, such as what motivates them, how they spend their time, and what sorts of professions they tend to have. Many industry analysis business plans will also have a section about market segmentation, in which customers with similar characteristics are grouped.
A typical industry analysis business plan will also contain information about how the people in this group interact with the product or service. This can include data about how often people in the target market use what the company has to offer or how likely they are to buy based on past behavior. It may also have information about the size of the target market and whether it is growing or shrinking.
After collecting information about the target market, the next step of a typical industry analysis business plan is to make projections for the future of this market segment. Some of the topics that can be covered in this area include anticipated sales, product cycle projections, and the expected effect of external factors. This can help the company to make an assessment of the risk involved in that particular business and enable it to determine whether changes are needed in order to keep it viable.
The external factors anticipated in an industry analysis business plan can include changes in the economy, government, and the habits of the target market. By forecasting the general trend of the economy, in addition to a particular industry, a company can anticipate how well the market will support its offering. Changes in governmental laws or regulations can also affect areas such as operations, finance, and even sales. The consumption habits of the target market may also change, depending on issues such as the state of the economy, new innovations in the market, and public perception of the company.
