Writing a Business Plan

4. Market and Competition

4.1 Define the market in which you sell. Focus on the segments of the market in which you compete.

• How large is each market segment?
• What is your market share?
• What are the important trends, such as market growth or changing tastes?Explain the reasons behind the trend.
• What are the key drivers affecting each important market segment?See Key performance indicators.
• What is the outlook for those drivers and the market?

4.2 Describe the nature and distribution of existing customers.

• Do they fit the profile of the chosen market segment? If not, why not?
• Is there a heavy concentration of sales around one or two large customers?

4.3 Outline the principal competition.

• What are the competing products or services? Who supplies them?
• What are the advantages and disadvantages compared to your own?For example, price, quality, distribution.
• Why will customers buy your product or service instead?
• Never overtly criticise or underestimate competitors.