In this section you should describe the opportunities available in your market and show how your proposals will exploit them successfully.  It may be helpful to prepare this section of the plan first, since some of the other sections, such as operations and finance, will be dependent on the ability of your business to penetrate and expand in the market.

Recommendations

• Show that a market exists for the products/ services you will provide;
• show that you understand the market forces and have the abilities and resources to supply and publicise your product/service effectively;
• make a realistic estimate of your potential market share based on sound assumptions;
• give a concise appraisal of the competition and do not over estimate your strengths or underestimate your weaknesses;
• use charts where appropriate to compare your strengths and weaknesses with competitors; and
• do not unjustifiably slight your competitors' abilities - investors expect to obtain a full understanding of why your sales goals can be achieved despite competition.

Key elements

Describe your customers:

• Who are they?
• Where are they located geographically?
• How sensitive are they to price and quality?
• Who has expressed an interest in the idea?

Describe your market:

• How large is the market?
• How developed is the market and what is its history?
• What is the projected growth rate for the future?
• Identify unusual market characteristics such as barriers to entry
• What do published forecasts predict about the market's future?
• What is your market share?
• Are you aiming for particular market segments?

Discuss your company's competition:

• What companies will you compete with?
• What are their strengths and weaknesses?  (Financial backing?  Technology?  Market share?)
• What are their similarities?
• What are their marketing strategies?  Consider their likely response to your entry to the market, the potential for new competitors to enter the market and competition from overseas.

Explain how you will achieve your sales goals:

• What marketing strategy will you employ?
• How will potential customers be identified?
• What customers will be the target in your initial marketing effort?
• Are advertising efforts important to your strategy?
• Consider the size of your sales force.