“Market share” and “market penetration” are sections or appendices of business plans; they are typically more important in plans of mid to large scope and are critical components of a plan to support revenue assumptions within the business plan and related forecasts. They are related yet distinct from a needed competitive analysis.
At www.thebusinessplanconsultants.com, we have completed many plans that involve new technology, Web-based businesses, or are national or global in scope. Many of these plans also target different market segments or groups of consumers. Therefore, the amount of time required to research and prepare Market Research and Market Penetration appendices can vary substantially with time an unknown factor for some plans such as emerging technologies. The opposite is true when analyzing a plan such as a retail business where there are a defined number of competitors and market penetration and share within a defined smaller region is easier to deduce.
In conclusion, be sure your business plan has significant details on competitive analysis, market share and market penetration. These are areas where the vast majority of business plans we receive that were completed by astute business owners, often using specialized software or templates, fall dramatically short of investors’ expectations.
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