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Writing Business Plans/Describing My Market Share

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Question
I'm using a business plan template from sba.gov, and I'm working on the "Definition of the Market" section.  There's a bullet that says "describe what share of the market you currently have and/or anticipate."  What exactly does that mean, and what are some helpful resources I can use to actually research this market in my area? The best way I can describe my business to you is a cross between a talent agency and event planning company.  I don't really know where to start as far as figuring out how to research that market.

Answer
Hello there. You haved stumbled on one of the key parts of the business plan. Your market is how many people you anticipate will use your services. The total market is how many people use this kind of service. This latter one you can research on the Internet. Your share of the market, you are finding out, is far more difficult to anticipate. Some people are over enthusiastic in estimating this and this causes alarm bells o ring with a potential investor.

So how to find out what size your market is. First of all consider these variables:
1) what or who are your contacts?
2) what services are you offering that you think people want?
3) what does your market look like? End users, actors, brides, talent, theatres etc. it helps to look at who will pay your bill, do you need to attract people
( such as if you were a third party organiser).
4) what price point are you aiming at? Are you looking at top end where you will get a lot of money from a few people or low end where you will receive little money from lots of people (think Walmart here).
5) what do you need to do/who do you need to contact to make your business work?

Weigh up the above to get an idea of who will want to buy from you. Think price, product, desirability. Or who, wants what at what price.

To get some formal ideas, try setting up a short, easy to understand questionnaire and ask.

It is really important that you understand your market, what they want and what they will pay. Decide what part of the total market you will get. Think small to start with.

in filling out this part of the business plan, define your market and then how your company will address these needs and wants.

The difference between needs and wants is: you need to buy food every week. You want an Apple iPad.  It is important that you decide if you have a need or a want service.

Also in your business plan look at the needs of your potential clients and how your services will address them. This
is important.

Good luck.

Writing Business Plans

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