Market Analysis: Proving the Opportunity Is Real
How to use real data to show funders there's a market ready for your business.
Why Market Analysis Changes Everything
Funders see hundreds of plans. The ones that stand out do not just describe a market — they demonstrate that the founder has done real homework.
The Three Questions Funders Ask
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Is this market real? Do not use estimates you made up. Cite a Stats SA census, a trade body report, or an industry study. Even a local government economic survey is better than nothing.
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Is this market big enough? Funders want to know that even in a worst-case scenario — where you capture only 1% of your stated market — the business is still viable.
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Do you understand your competition? Saying "there is no competition" is a red flag. Every business has competition. Funders want to see you understand who you are competing against and why customers will choose you.
How to Research Your Market Without a Budget
- Stats SA (statssa.gov.za) — free census and economic data by sector and region
- SEDA (Small Enterprise Development Agency) — sector briefs for common SME categories
- Your local municipality — economic development reports are often publicly available
The Competitor Section
For each competitor, describe:
- What they do well (honest assessment)
- Where they fall short
- Why your offering addresses that gap
Checklist
- [ ] Target customer is described with specific demographics, not just "small businesses"
- [ ] Market size figure cites a real external source
- [ ] At least 3 named competitors are analysed honestly
- [ ] At least one market trend explains why now is the right time