People who read your business plan will already know a little bit about your business because they read your executive summary. For a business with a physical location, perhaps there aren’t any existing solutions within reasonable driving distance.
But this chapter is still hugely important because it’s where you expand on your initial overview, providing more details and answering additional questions that you won’t cover in the executive summary. Defining the problem you are solving for your customers is far and away the most critical element of your business plan and crucial for your business success.
You will also provide a quick overview of your legal structure, location, and history if you’re already up and running. Because once you know the details of your business inside and out, you will be better prepared to write your executive summary.
After all, this section is a summary of everything else you’re going to write about.
If you can’t pinpoint a problem that your potential customers have, then you might not have a viable business concept.
Once you have described your target market’s problem, the next section of your business plan should describe your solution.You’re most likely targeting a specific market segment such as “style-conscious men” or “runners.” This will make it much easier for you to target your marketing and sales efforts and attract the kinds of customers that are most likely to buy from you.If you are writing a business plan to get a bank loan or because you’re asking angel investors or venture capitalists for funding, you must include the details of what you need in the executive summary.Because your executive summary is such a critical component of your business plan, you’ll want to make sure that it’s as clear and concise as possible.Cover the key highlights of your business, but don’t into too much detail.If so, use this final portion of your target market chapter to provide details about those customers and how they are important to your business’s success.Immediately following your target market section, you should describe your competition.Investors will want to know what advantages you have over the competition and how you plan on differentiating yourself..Competitors may not always come in the form of “direct competition,” which is when you have a competitor offering a similar solution to your offering.Your solution is the product or service that you plan on offering to your customers. How exactly does it solve the problem that your customers have?Depending on the type of business you are starting and the type of plan you are writing, you may not need to go into too much detail here.