CHAPTER 3 - DEVELOP A
Assume that your reader knows nothing. Even
if you know they are experts, remember that the Lenders or Investors want
to see that you know more about the industry and your market than they
General industry definition
Current size and demand
Potential target market
Potential market growth
Market share of competitors
Technical evaluation of
Direction of industry
Current condition of industry
Initial plan to obtain a market
Resources available or allocated to
Clearly defined long range market
Support assumptions on ability to hold
Who are the customers?
Percentage of Business:
We will target customers by:
Product lines or services
Analyzed how successful your product
or service can be?
What is the total potential
Is there really a market for you at
Does your company have the strength to
get the job done?
Let outsiders know why this will work
and be able to support what you believe in!
What measures have you taken or will you take to insure the
proprietary nature of your product? Patents, Trademarks, Copyrights,
Trade Secrets, Proprietary Contracts, etc.
Product or Service
If your product or service is of a proprietary nature, take steps to
protect it. Have a non-disclosure/non-circumvent agreement for
partners or investors to sign. Keep it simple. If it is too long or
contains too many legal words, no one will sign it.
What is your product/service and what
does it do?
What advantages does our
product/service have over those of the competition?
What are the unique features, patents,
What disadvantages does your product
or service have?
Where will you get your materials and
List the important economic factors that will affect your product or
service. Consider things such as country growth, industry health,
economic trends, rising prices, etc.:
What are the legal factors that will
affect your market?
What are the government
What factors, that you cannot control,
will affect your market?
Look for outside opinions on the commercial prospects of your
product or service. There are numerous low cost or no cost
organizations, such as retired executives or small business network
groups to run your ideas by.
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