Economics

Economics Facts about your industry: • What is the total size of your market? • What percent share of the market will you have? (This is important only if you think you will be a major factor in the market.) • Current demand in target market. • Trends in target market—growth trends, trends in consumer preferences, and trends in product development. • Growth potential and opportunity for a business of your size. • What barriers to entry do you face in entering this market with your new company? Some typical barriers are: o High capital costs o High production costs o High marketing costs o Consumer acceptance and brand recognition o Training and skills o Unique technology and patents o Unions o Shipping costs o Tariff barriers and quotas • And of course, how will you overcome the barriers? • How could the following affect your company? o Change in technology o Change in government regulations o Change in the economy o Change in your industry