• Determine your trade area—the geographic scope where your customers can be reasonably drawn. • Use authoritative sources such as U.S. Census data, local chambers of commerce, universities, trade journals, and industry reports. The goal is to gather objective, current data to ensure your forecast reflects realistic market conditions. Production and Operational Considerations Sales targets must be matched with your actual ability to produce and deliver goods or services.
• Assess production or service capacity and scalability • Review supply chain stability and labor availability
• Ensure adequate capital and working capital to sustain operations and sales efforts Operational constraints can limit revenue potential regardless of market opportunity. As mentioned previously, market research is an inexact process, but, with a desired income as your target and an orderly approach to gathering data, you can become aware of the magnitude of market opportunities. This knowledge will then assist you in making rational and intelligent decisions regarding your proposed business.
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