6 Ways Your Market Research Will Apply to Your Business Plan

 

Those unfamiliar with Market Research may not realize its full potential and importance, especially in the business plan. At the most basic level, it tells you about the overall size of the industry in which you hope to operate. However, market research goes much deeper than that and informs the business plan in many ways and sections.

1. Company Description

Part of the company description is discussing the demand your product or service is meeting. It should also touch on your target customers. Both of these aspects of this section of the Business Plan are identified – or at least supported – through market research. In fact, many other aspects may not be as directly tied to it but, will still be impacted by what your market research reveals.

2. Products & Services

When discussing your products and services, one of the things you should cover is how it compares – and has advantages over – similar products and services of competitors. Market research is when you will identify these competitors and competing products. It is only by finding ways to differentiate from your competitors you are likely to be successful.

3. Market Analysis

Although this may be the most obvious section of the business plan where Market Research applies, it is no less important. The market analysis goes into an overview of the industry as well as diving deeper into your target market. Informed by both qualitative and quantitative market research, this section creates part of the backbone of your overall business plan.

4. Marketing Strategy

The most successful marketing plans meet their clients where they are and speaks to what matters most to them. Guess how you determine this? If you guessed market research, you’re right! It is only through understanding your market, as discussed in market analysis above, that you can truly plan a successful marketing strategy.

5. Financials

Everything from the price you charge for your product to the full market potential will play a role in your Financial Projections. This includes sales projections as well as full financial statements. Even the cost of rent and other goods and services that price varies based on location will be determined by market research.

6. Executive Summary

The executive summary will be the first section of your business plan but, its mentioned here last for a reason. The executive summary should be written last. It is a brief overview and introduction to your entire plan. Since it includes info on the overall plan, it will be underscored by market research throughout.

These are far from the only sections of the business plan that market research informs, they are just some of the most obvious. In reality, market research underpins your entire business plan, or at least it should. In many cases, you may be performing market research without even realizing it. However, intentional market research is needed to answer all the most pressing and pertinent questions of the business. It should also be approached intentionally to make sure it is thorough and accurate.

It is important to note that market research comes in both qualitative and quantitative forms. On the one side, quantitative deals with numbers while qualitative deals with more descriptive factors. Both are important and serve their place. If you have any hesitation or concern over how to conduct market research, it may be in your best interest to hire a professional researcher. Given the nature of what it will impact in the Business Plan – as seen above – it will be well worth it to ensure it is done right.