Identifying and Targeting Your Market: A Guide to Creating a Successful Business Plan

Task 1: Selecting an Initial Business Idea and Identifying the Target Market

Select an initial business idea to present using relevant criteria and describe how to identify the target market for your new business idea.

You need to investigate a selected business and produce a presentational material (PowerPoint Slides) which covers the following points

• A description of your business idea 

• A justification of your plan using the criteria discussed so far in this unit 

• The steps you will take to identify your target market.

• Your chosen business type (new start-up, franchise, buying an existing firm.

• Your aims and objectives. 

• Your unique selling point and the competitive edge you will have. 

• Potential demand for your new business. 

• Potential profitability. 

• External Influences (Business trends, PESTLE & SWOT analysis). 

• How business planning will help you to ensure your success.  You must describe the ways in which you can identify the target market. You should cover the following in your presentation. 

• Descriptions of various methods i.e. segmentation, market research, etc.

• Explanation of how to identify the target market, given the business idea and which of the methods you have used to identify your target market.

• Explanation of the criteria used to de?ne the target market.  Comment about how effective this method is.

Criteria covered by this task: P1 and P2

Explain and justify the methods you have used or are going to use to help identify the target market for your proposed business. You need to investigate your selected business and produce a report. Explaining requires you to give reasons and justify in detail, all aspects. In this case you should look in detail at the following points:

• Explanation of all of the methods that you could use to identify your target market with reasons as to why  they are suitable.

• Explanation of the bene?ts of using each method.

• Explanation of the limitations of each method.

• Examples of each method used in suitable situations.

• Explanation as to why each method is useful, examining the effect it has on the potential business.

• Explanation as to why each limitation is not useful, examining the effect it has on the potential business.

You need to explain that some methods of identifying your target market may be more challenging. You must explain and justify why the ways you choose to select your target market are the most suitable.

Criteria covered by this task: M1

Learner Comments

How did you find the assignment and what feedback would you like from your tutor

Sources of Information to support you:

Books 

BTEC L3 Business Book 1 and 2

Magazines

Moneyweek

Entrepreneur startups

Vocational Scenario or Context

Starting a small business is an ambition for many people. The business idea could be almost anything such as a coffee shop, a courier service, a hairdresser, a motor vehicle repair workshop, a DJ service, a painting and decorating business, an equipment hire operation, or even a cake decorating business. However, starting a small business can be fraught with difficulties and the idea may not always be successfully realised. Those setting out on this venture need to consider the business idea, where funding will come from, the potential market, the competition and a host of other issues that must be addressed if the business start-up is to be successful.

You have nearly completed your course in business studies and gained enough knowledge to gain confidence that you can go on and start up your own business. Due to your lack of enough capital, you have decided to keep your business as a small concern at its inception before you try and expand it. The assignment requires you to prepare and present a business plan for a new business of your choice.