Be sure to back up your comments with hard cold facts, statistics, and sources of information. For instance, a statement like, “I predict the sales of teddy bears to skyrocket in the next year,” will do little to impress investors. However, “Dun and Bradstreet record a steady growth of teddy bear sales between 1985 and 1990 adding up to a total increase of 250%,” will. You can get information from trade journals, government publications, business development centers, and chambers of commerce.
In discussing your market, don’t limit yourself to the way it is today. Mention any new markets you could tap into by raising or lowering your product’s price. Also describe how you’d have to change your product to make it more appealing to these new markets.
Keep in mind that growing and declining markets require different strategies. Growing markets are characterized by more investment in promotion to ensure people at least try a product and hopefully buy it again; research and development to broaden product range as growth flattens out; increasing investment in stocks and distribution to meet the growing demand; and low pricing strategies during the early stages, followed by increases as the market growth is reduced. Receding markets, on the other hand, require accurate control over promotional expenditures, a smaller range of products, a sharp eye on the level of stocks and distribution costs, and a pricing policy designed to maximize profitability rather than expand market share.
Don’t underestimate the impact of changes in legislative controls. For instance, free trade between Canada, the United States and Mexico has given a shot in the arm to some industries, but spelled the kiss of death for others. You may want to also consider how changes in social conditions will alter your industry.
Look into government assistance programs for small business development. You may qualify!
If your industry is seasonal–candy Easter eggs for example–discuss the effects this will have on your inventory and cash flow. Also think of ways you can smooth out the ripples of seasonality by trying out your product in other export markets or carrying additional products.
In some industries, computers for instance, research and development are integral to staying alive. If yours is a fast-pace industry, describe the research and development you as well as other companies have undertaken. However, if you’re in a field where changes are few and far between–toothpicks haven’t changed much over the past twenty years ago–you may want to skim over this topic or leave it out altogether.
It is easier to go down a hill than up, but the view is from the top.