Day 3 = Illustrate you know your market / prospective customers

You want your bank to strongly believe that you know your targeted markets and prospective customers. The more detailed, specific, and credible you are on this point, the more likely the lender (or investor) is to believe you have made intelligent revenue projections.

This is a central part of the loan proposal. To accomplish this, here are some things we want to demonstrate knowledge of:

- Market segments

Most companies sell to several different customer types. Segmenting customers into multiple types shows your lender you understand your customers. While this number can range, we would suggest you highlight 3 to 6 different customer types. Exceptions can be made to this, but is a reasonable starting point.

- Market Size

Doing some research on the market size helps quantify the market potential and infers the share of the market you will need to capture to achieve your revenue goals. Identifying statistics from outside parties (research, publications, website, government agencies, etc) provides credibility.

- Tendencies, likes, and dislikes

Demonstrate some knowledge of what is going on in the lives (or businesses) of the people you plan to sell to. If your product or service solves a problem, you want to show you understand the problem (or the pain) the customer is experiencing. Prove the customer has a problem and you hold the key. This may not be a scientific or as quantified as the item above, but shows an understanding of the mindset of customers.

- Where customers are and how to reach them

While you are at demonstrating your knowledge about customers, it makes sense to explain how you will identify and reach potential customers. The more "reachable" customers seem the more lenders will believe you can achieve your goals.

A very common mistake in marketing plans is to be too broad, and too vague in describing the customers you plan to sell to. Great marketing plans get into these details and make lenders feel good that the company is knowledgeable about how to connect with the market.

Let us know if you have any questions or challenges. Contact us at .