Research industry

Research industry

Research industry averages for profitability in your marketplace.  Use this information to determine the validity of your own projections and make changes if necessary. 

Determine your location and business environment. Address all legal, zoning, and licensing concerns your business will face. What form of business will you set up? Why? The level of detail required for this section will depend on your type of location (virtual, retail, warehouse, office, restaurant, etc.) and on your idea. Demonstrate that you have completed your research.   DON'T say "We will obtain all of the appropriate permits"; instead, summarize them. When you explain your form of business—remember your audience. If you select an S corporation, explain your reasoning for that selection in the context of your potential business, rather than providing the definition of an S corporation. Address any pending regulations which may have an impact on your business.

Describe the competitive landscape. Who are the key competitors? What are their strengths and weaknesses?  Approximate their market shares. How will you take share from them? How will they most likely try to stop you if you are successful? Who are your indirect competitors? What do they offer your prospects?

Identify your company's major strengths, weaknesses, opportunities, and threats. Describe how you plan to maximize your strengths and opportunities and minimize or mitigate your weaknesses and threats.

This section will give the reader an understanding of the overall industry with specific facts and figures. Data is critical in this section as you must specify the size of the market and show how you plan to capture the market. You should also have an overview of the competitors in your space.
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