How Adequate Market Research Can Make or Break Your Bank Business Plan

1. How Adequate Market Research Can Make or Break Your Bank Business Plan Have you ever tried to complete a puzzle without knowing what the fnal picture is supposed to look like? In business planning, market research is one of the ways you are able to view the full picture of the business puzzle. It is for this reason that Market Research can have a signifcant impact on your business plan, especially a bank business plan. When creatng a bank business plan, the most important thing to keep in mind is your audience. A bank loan ofceres primary objectve is to determine if you are going to be able to pay back your loan. Your market research will help them make this determinaton in a variety of ways. Market Research Shows You Are Prepared One thing that allows great business plans to stand out from good business plans is your market research. Market research is arguably one of the most difcult parts of the business plan to complete. When you have thorough market research, with informaton from trusted and reliable sources, it shows you have truly done your due diligence. By associaton, this will help to legitmize and validate the rest of the Bank Business Plan as well.

2. Market Research Creates Cohesion in Your Business Plan Reflectng back on the opening paragraph here, market research is what helps paint the picture for the entre bank business plan. It helps shape the potental for the full plan. It also helps pinpoint the micro aspects. When your market research is done thoroughly, it helps inform all aspects of the business plan. It will – or at least should – be mentoned in nearly every secton of the plan whether directly or indirectly. It becomes an underpinning aspect of your plan that helps te all the decisions you make together. Determining the size of the total market and reviewing your compettors give you a sense of your overall market potental. It allows you to pinpoint your niche markets. It helps you plan for how many people you will need to hire. It informs if you hire them locally or outsources. It tells you how much expenses are likely to cost. The list goes on. Validates Your Financial Assumptons Last but certainly not least is the impact of market research on the fnancials. The Financial Projectons are undoubtedly one of the most important aspects to the loan ofcer. This is where they get the chance to determine if you are likely to have the cash flow to meet your loan repayment terms. Your market research will give them an indicaton if your fnancial assumptons are reasonable and achievable. This then gives validity to the rest of the numbers. While other factors like your personal credit or prior business success will weigh in heavily, good market research can help tp the decision in your favor. There are few parts of the business planning process that are as vital as the Market Research. If youere unsure about how to conduct this research, donet be afraid to look to professionals for assistance. Knowing the impact it can have, it is well worth the investment.