Industry and Market Analysis: Know the Size and the Gaps
In the industry analysis, do research and check: What is the history of your targeted business? What is the current status of your targeted industry? What is the future status of the industry you intend to enter? Studying and doing research help you decide whether you actually want to continue the business in question. When you start your business, you practically lose a huge part of your focus, and many pieces of information that currently seem obvious get out of your mind, unless you properly classified them and kept a summary in an orderly fashion while formulating your business plan.
Market analysis is another item. Investigate the size of your target market, its current status, how it has been in the past and how it is going to be in the future, and what services are provided in it. Prepare a checklist of whatever you need to know about the market and evaluate it constantly. Sometimes you can find market gaps: what has not happened in your market, or what has not been properly implemented. You can also find an item that entered the market when technology was not as advanced or people were not ready to use it, but they are now ready.
You need statistics to know the market size. The consumption rate is equal to the sum of production and import, so you can first check the statistics given by customs to determine the import rate. The larger a business, the more public its information; the smaller a business, the harder knowing the market size, unless you think out of the box and develop creative methods. You can check people who provide services to that market, or syndicates and unions. If a union has 10 thousand members, you can guess how many people are active in that business. The high number of competitors is not always bad; you must consider the market needs and the proportion of supply and demand. Record the analysis results of each stage in a table.