| Proving the market for a business is an extremely | | | | a solution. With the advent of the web, this payment |
| important first step for a business plan. | | | | can be with their attention, as when customers |
| Market Size | | | | frequenting a website without paying a dime. In this |
| The market size must be significant enough that the | | | | case, the business model may be to meet the needs |
| business will be able to thrive, even if competitors | | | | of a third party (advertisers) by providing them a |
| enter the market and take some market share. For | | | | means to reach this group by buying ads on the site. |
| example, being a specialty book store in a small town | | | | To be financial feasible, the value of solving the need |
| may not be successful if the potential customers | | | | must be greater than the cost of providing the solution. |
| number only in the hundreds. Use demographic data to | | | | Competitors Not Positioned To Act |
| show the market size either based on geography or | | | | Finally, you should also show that the top competitors |
| other aspects. | | | | are not, for one reason or another, best positioned to |
| Customer Need Not Being Met | | | | act on this unmet need. This could be because they |
| Next, it must be shown that there is a need in this | | | | serve customers with different values or are solving a |
| customer market that is not being met. This could be a | | | | slightly different problem, for example. The competitive |
| group using a certain product or service which is not | | | | analysis should talk of the strengths and weaknesses |
| entirely satisfying the need or a group currently using a | | | | of competitors with a focus on how your business can |
| substitute product. In any case, the problem must be | | | | exploit those weaknesses to its advantage. |
| important enough that the customers would be pay for | | | | |