The Market

The Market

If you are applying for a loan, you will need to convenience lenders that there is a market for your product, or service, and that you have the ability to service the market. What is the market size, what is your target market, what are the growth prospects, what market share do you plan to capture, and how.

Business Plan Example

Barbecue restaurants have been gaining in popularity in Texas for many years led by chain establishments such as Bill Millers in San Antonio, Texas. Because Barbecue is ready to serve when you come in to a restaurant it is a popular alternative to fast food when customers want fast service or to orders go.

We surveyed the car license plates in another restaurants in Taft over a three-month period and found that from 70% to 80% of the customers were from out of the county. Conversations with the restaurants owners confirmed these numbers. Our location on the main highway through town will be important to our success. Billboard type signs along the highways will inform customers of our restaurants fare and services.

There are 85,000 cars per day passing through town according to data from the highway department. Based on our survey of out of county license plates parked at prepared food establishments, approximately 1% of the traffic passing through town or 800 to 900 cars are stopping to eat each day. Being the only Barbecue establishment in our trade area we feel we can capture a 10% market share of the travelers who stop, plus the local trade and based on these numbers we will serve 110 customers per day at an average ticket between $7.00 to $9.00 per person.

There were 325 weddings, 12 parade and rodeo type events, 13 school events, 32 church events, 4 farm related events, 9 oil company events and several other private company and governmental agency events that our catering services could be offered to in our seven mile trade area. Beyond the normal trade area the numbers of available events per year to market catering services to increases dramatically. The average catered job is for 150 plates at an average price of $6.50, we expect to capture 36 to 45 events per year based on available events and our experience at other restaurants that offered catering.