For example, if you’re opening a new type of grocery store, you’ll want to know how much people spend on groceries in your area.
Your forecast should reflect a realistic portion of that total spend.
It’s probably not realistic to gain 50 percent of the market within your first year.
However, don’t make the mistake of assuming that you can easily get 1 percent of a very large market.
Tools like Live Plan can help you automatically compare your forecast to your accounting data, so it’s easy to do.
Customer Analysis Business Plan Research Paper Index
But, even if you use a spreadsheet, tracking your progress will help you adjust your business strategy quickly so that you can do more of what’s working and less of what isn’t.Or is the market potentially shrinking as consumers take advantage of grocery delivery services?Your market analysis isn’t complete without thinking about your competition.A business plan highlights the future objectives of a company, often relating to how the company will sell their product.It also explains proposed strategies to meet sales goals.1 percent of a 3 billion dollar market is still million and even though 1 percent seems like a small, attainable number, you need to understand and explain how you will actually acquire that volume of customers.When you build your forecast, use it as a goal for your business and track your actual sales compared to what you had hoped you would sell.Understanding your customers is the key to success for any startup.If you don’t have a deep understanding of who your customers are, you’ll have trouble developing products that truly fit their needs, and you’ll struggle to develop a successful marketing strategy.Once you have an idea of your pricing, think about how much you expect to sell.Your industry research will come into play here as you think about how much of the overall market you expect to capture.