Prepare a business plan

In this section you should:

• define your market
• define your position in the market
• outline who your competitors are

To do this you should refer to any market research you have carried out.

You need to show that:

• you're fully aware of the marketplace you're planning to operate in
• you understand any important trends and drivers
• your business will be able to attract customers in a growing market, despite the competition

Key areas to cover

• Your market
  Its size, historical data about its development, and key current issues.
• Your target customer base
  Who they are and how you know they will be interested in your products or services.
• Your competitors
  Who they are, how they work and the share of the market they hold.
  The future
  Anticipated changes in the market and how you expect your business and your competitors to react to them.

It is important to know your competitors' strengths and weaknesses as compared to your own.

It's good practice to do a competitor analysis of each one.

Remember that the market is not static - your customers' needs and your competitors can change.

As well as showing the competitor analyses you have done, you should also show that you have considered and drawn up contingency plans to cover alternative scenarios.