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How do I conduct market analysis for a small business?

Picture your small business as a brave knight entering a bustling tournament. To win, you need to understand the lay of the land. That’s where market analysis comes in, your trusty squire gathering intel.

  • Industry size and growth: Is it a booming coliseum or a sleepy jousting ground?
  • Trends: Are lances being replaced by laser swords? Adapt or get trampled.
  • Regulations: Are there any moats or hidden rules to navigate?
  • Strengths and weaknesses: Who wields the mightiest marketing magic? Where are their chinks in the armor?
  • Market share: How much of the pie are they gobbling up?
  • Unique selling proposition (USP): What makes your knight stand out from the crowd? Is it a dazzling shield or a secret weapon?
  • Target market: Who are you trying to woo? Princesses with exquisite taste or burly barbarians?
  • Needs and wants: What are their burning desires? A dragon-slaying potion or a magical productivity elixir?
  • Buying habits: Do they prefer to barter or spend freely?

Example: Imagine you’re a bakery opening in a health-conscious town. Through your analysis, you discover a gap in the market: delicious yet nutritious treats. Your USP becomes “guilt-free indulgence,” targeting active professionals with a sweet tooth. You know your competitors offer low-fat, low-flavor options, so you focus on using natural sweeteners and superfood ingredients.

Remember, market analysis is an ongoing quest. Keep gathering intel, refine your strategy, and joust your way to success!