Whether for real estate or any other business, knowing your market and the trends within it are crucial for your business plan.
Your business exists within a series of ever-expanding spheres of influence. The discussion of these spheres as elements affecting your business will be the bulk of the Industry and Market Trends subsection of your plan. Be sure you understand each factor and how it influences your business.
Some of these elements may have little or no bearing on your business. That’s fine, but you may want to address that lack of influence in your business plan as well. The elements to consider include:
- your business
- the competition
- the market
- the industry
- the government
- international affairs
- other market factors
In the center of all these spheres of influence is your business. (You knew it was the center of the universe, right?) You have discussed your business thoroughly in other sections and subsections of your plan, so you don’t need to go into a description again here. In this subsection, readers are more concerned with how your business interacts with the other elements or outside forces and how those interactions currently and will affect your business’ potential for making money. So discuss how your business is affected by the competition, the market, and the industry you are in.