Learning Hub For Business Minds

Back to our business plan.
Let's drive straight into. Our last discussion was business description. Today, will be market analysis.

Most business owners or want to be owners voluntarily or involuntarily ignore this step. You around the street and you notice two stores selling identical products and worst of it they a store or store away from each other.

Let's use this as an example, you have a plan to open provision store within your home location, now during your business plan where you required to make a market analysis.

First, who sells what I want to sell? How do they sell? What are their prices? What are the quality of their product? What is their presence like in the market? What is the difference in their customer base for the last 2-3 months?

Secondly, is the market favourable? Are my products acceptable? Are my products safe? What location best suits? What strategy beats my competitors (price strategy, quality strategy, sales strategy, promotional strategy)?

Once, this questions have been answered. This phase of your business plan is done.

Example of a market analysis write-up;
In Lagos market, there are numerous competitors already in the same market segment I intend to venture. Meanwhile, after a good market survey using adesina store and bisola store as my competitors. They have the strength of market presence, as they are well known and have attracted a great number of customers. As for their weak spot, they have a challenge in their prices as they relatively high compared to my source of product which would make mine cheaper. Therefore, this serves as an opportunity to implement price and promotional strategy into my business. It looks like the business would be success but there is a risk to note, if my presence and strategy is noticed their strategy to retain their customer could improve. Leaving my business open to other arising threats. Nevertheless, every business has one risk or other to deal with. We believe our business will prosper through the waves of the market.

While taking an advantage of the holiday season, I came across a Nollywood movie about couple.
The wife was sick of being just a housewife. So, she got an idea of starting up a boutique.
Later that day, she got the time to discuss her idea with the husband and this goes the conversation.
Conversation:

Wife: Honey I want to start a business
Husband: beautiful, that's nice what type of business do you wish to start ?
Wife: a boutique
Husband: Hmmm alright, so how much are we talking about here
Wife: N4 million
Husband: okay, that won't be a problem. There's one thing missing, you need to write a business plan.
Wife: Huh! What do you mean business plan? What do I need a business plan for?
Husband: A business idea is just an idea, meanwhile a business plan is the life of the business even if it's an online or store business.

End conversion

What is a Business plan?
A business plan is also a road map that provides instructions for a company's future planning and helps it avoid roadblocks. The work you put into creating a complete and precise business plan, as well as keeping it up to date, is an investment that will pay off well in the long run.

Meanwhile, we need to know why we need a business plan?
https://www.growthink.com/content/20-reasons-why-you-need-business-plan

Click the link above to learn more.