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Awesome, we're almost done with our
business model.

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We've pretty much covered all the
different aspects or

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moving parts, and we have a good idea of
how we want to start out.

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But we aren't operating in a vacuum.

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It's always important to take a look
around at the current state of things.

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What the market is like, who's in it, and
what have they done?

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When starting a business it is important
to understand the kind of

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market that you are getting into.

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Is this a well-established market?

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Are there a large number of customers
already?

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Is there an existing market, but with
gaps, where a product designed for

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a certain segment's specific needs can
succeed?

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Or is this a brand new market?

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The type of market determines how much you
need to spend on marketing and

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sales and thereby dictates your cash
needs.

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Keep in mind, that just because current
market participants behave in

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a certain way, we don't have to do that.

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We don't have to implement a revenue model
just because everyone else is doing it.

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On the flip side, there are trends or

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certain characteristics, that are worth
paying attention to.

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You could create a mobile app, and sell it
for

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$25, because you want it to be different,
and everyone else is selling it for $0.99.

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But customers have come to expect a
certain price point for apps.

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And venturing outside this norm, will be
difficult.

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It doesn't mean that you shouldn't, just
tread carefully.

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What are some of

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the other important points when conducting
an industry analysis?

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How large is this market?

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It's always good to understand if there's
more room in this market to grab some

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profits or if you're going to have a
really hard time.

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Who else is in this particular market?

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Who are our competitors?

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Once you compiled a list of these
competitors,

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dig in further to understand their
characteristics.

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What are they doing for their customers?

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Is their product or service similar to
what we're offering?

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What needs are not met by existing
players?

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And how can you improve your product or
service?

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You also need to look at what their price
points are,

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and what features are they highlighting.

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Understanding your competitors will help
you get an idea of

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existing industry norms.

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For example, earlier I decided to go with
a product feature dependent pricing tier,

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that has a basic and a pro component.

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But looking at almost every single app in
project management businesses,

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it seems like the norm is a free tier in
the beginning, so

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that customers can play around with it.

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And get used to the app, without having to
pay.

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Let me give that a try as well.

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It will definitely help increase my
acquisition funnel.

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And industry analysis is the last
component in our business model canvas.

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It well help us form a better picture of
what our plan is moving forward, and

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how we are going to implement it.

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There are lots of different questions you
can ask based on the type of market,

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the type of company you're creating, and
your customer base.

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Rather than talking about each and every
possible question, I've complied a list

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for you, which you can download from the
notes section of this video.

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Figure out what type of market you are in,
and look over some of

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the questions you should be answering when
exploring your business model.