CHAPTER 3 - DEVELOP A STRATEGIC POSITION

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 do.

Market Overview

• General industry definition
• Current size and demand
• Potential target market
• Potential market growth
• Market share of competitors
• Technical evaluation of industry
• Direction of industry
• Current condition of industry

Market Approach

• Initial plan to obtain a market share
• Resources available or allocated to market penetration
• Clearly defined long range market strategy
• Support assumptions on ability to hold market share

Market Analysis
Who are the customers?

Percentage of Business:

• Private sector
• Wholesalers
• Retailers
• Government
• Other

We will target customers by:

• Product lines or services
• Geographic area
• Sales

Feasibility

• Analyzed how successful your product or service can be?
• What is the total potential market?
• Is there really a market for you at all?
• 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!

Product Protection
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 Analysis
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, expertise, etc.?
• What disadvantages does your product or service have?
• Where will you get your materials and supplies?

Outside Factors
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 factors?
• What factors, that you cannot control, will affect your market?

Commercial Viability
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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