Business Plan Writer for Companies Raising Capital

The Market Opportunity Section of Your Business Plan

The Market Opportunity Section of Your Business Plan

How to Raise MoneyThe first section of your investable business plan is the Market Opportunity section.

Let’s start with the bad news. The chances of obtaining all the market opportunity information being in one single database waiting to be extracted and used immediately will never happen. Instead, information must be compiled, extrapolated and interpreted from multiple sources. This takes time, effort, and attention to detail.

Now for some good news. While you begin your market opportunity research with a hypothesis, you will discover new markets and new information that you never knew existed. This always happens.

Research is repetitive and slow. Be prepared to spend several days or weeks properly outlining and proving the market opportunity exists.

What a Financing Source Wants to See

Within the Market Opportunity section of your business plan, a financing source wants to see the following:

What is the big problem you are solving?  – People pay to have problems solved. Whether a high school is seeking a location for its senior prom, a family of 4 is seeking someplace to have dinner, or a business is seeking a Search Engine Optimization expert, we are all most interested in reducing the amount of pain in our lives. It’s imperative to prove that there are enough people in the market place who care about solving the issue your company alleviates.

How big is the market? – Is the issue large enough? Do enough people care about solving it? Can your business provide your solution in enough quantity to make a sizable profit?

How much of the market will your company capture? – To believe that everyone who is a perfect prospect would also be a customer is naïve. If you can prove that 2-5% of the market place would be clients and it would be a sizeable enough client base to make significant profits, then you may have an attractive proposition.

But don’t say to an investor, “If we only capture 2% of the market, we’ll make billions.” They don’t like that. Instead say, “The entire target market has 6 million Americans. Our goal is to attract 150,000 as customers.”

If you’re seeking a bank loan or angel investor and need a great business plan, contact Cheree at 703-934-4630.