As a direct seller, you have the major advantage of your parent company already completing an extensive market analysis. Check around the company literature or contact the company directly and I bet you can get the following information:
- Market size (current and future)
- Market growth rate
- Market profitability
- Industry cost structure
- Distribution channels
- Market trends
- Key success factors
Now the trick is to take this information from a national level to your local level where you can maximize your business growth.
A simple method you can use to evaluate your market is a SWOT analysis. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats.
- Strengths: characteristics of the business or team that give it an advantage over others in the industry.
- Weaknesses: are characteristics that place the firm at a disadvantage relative to others.
- Opportunities: external chances to make greater sales or profits in the environment.
- Threats: external elements in the environment that could cause trouble for the business.
A really fun, easy way to create a SWOT analysis is to take a piece of paper and draw a big +, so you have four boxes on your paper. Put the word strengths in one box, weaknesses in a separate box, etc. Now put as many bullet points of information in your boxes as you can think of. Remember, this part of the marketing analysis is really in at capturing your Strengths, Weaknesses, Opportunities, and Threats. When you’re done with that, if you want to get more detailed, you can!
Taking time to really think through your SWOT analysis will give you a firm foundation for the next step, which is creating a detailed marketing plan.
Arla DeField, CBC, is also a Certified NxLevel Facilitator, and teaches an Entrepreneurial Business Course with the SBDC and the local Greater Spokane Valley Chamber of Commerce. Arla has worked as an owner and executive of several businesses, and is now using her experiences to coach entrepreneurs in the development and execution of their business plans. If you want to get started or propel your business to the next level, contact Arla through her website, www.yourcustombusinessplan.com or write arla@yourcustombusinessplan.com.
